by
Heather Mayer, DOTmed News Reporter | June 11, 2010
How insurance companies use their premium dollars is a factor in whether their requests for premium increases will be granted, said Neustadt.
"For too long New York families and small businesses have been faced with the nightmare of choosing between out-of-control premiums or forgoing health insurance," said Sen. Neil Breslin, chair of the Senate's Insurance Committee, in prepared remarks. "By restoring prior approval, we will be bringing smart and responsible regulation to the health insurance industry."
But the New York Health Plan Association (NYPHA) said there's "nothing good" about the law.
"It's the wrong direction for the state to be moving in and the wrong answer to the problem of rising health care costs in New York," Leslie Moran, senior vice president of NYHPA told DOTmed News.
The underlying costs of health care -- increased utilization, higher hospital costs and increased physician and drug costs -- are not addressed with the new law, she said.
"The law simply imposes price control or price fixing on health insurance premiums and ignores the real reason that health care premiums are going up," Moran explained.
She also pointed out that the state claims it's trying to reduce the cost of health care, but on Thursday the New York Senate passed a bill that would force insurance plans to offer very broad coverage of autism services.
"It's ironic that the governor and the legislature are saying we need to bring down the cost of health care and at the same time keep taking steps that do the exact opposite and drive up costs," Moran said.
Going forward, NYHPA plans to work with the insurance department to address concerns with the law, including technical flaws in the language and the unrealistic time line implemented for premium increase pre-approval.
"Now that they've signed the bill into law, we're not throwing up our hands and saying there's nothing we can do," she said.
According to the text of the law, the process of approval for premium increases will include public notification and opportunity for comment. The superintendent of insurance can reject a proposed rate adjustment if the increase is unreasonable, excessive, inadequate or discriminatory. The financial condition of the insurer may be considered in this determination. The superintendent must give a final determination to approve, modify or disapprove a premium rate adjustment within 60 days, or the rate is considered in effect.
Astrid Fiano contributed to this report.Back to HCB News
