Making sure insurance rates are justified

Earlier this year, some health insurance companies announced steep rate hikes. At a time when Iowa families and local businesses are cutting back, the Legislature quickly stepped in to get answers, seek justification and find solutions.

We passed an insurance company accountability plan that gives Iowans more information about health insurance plans and premium increases. When an insurer applies for a rate increase, they must notify policyholders of all factors that make the rate increase necessary.

In addition, the Iowa Insurance Consumer Advocate must solicit public comments on each proposed rate increase and post them on the Iowa Insurance Division’s Web site www.iid.state.ia.us. And the Iowa Insurance Commissioner is required to hold a public hearing if the proposed rate increase exceeds the national average.

We also established a health insurance work group to consider ways to reduce costs of health care and insurance. As a part of this effort, the Iowa Insurance Commissioner will report annually to the Legislature on rate increase data, health care expenditures, and factors that raise or lower insurance plan costs.

These changes put Iowa ahead of most states in transparency and disclosure of health insurance premiums.