OSPIRG BLOG

Good news. HB 3145A, the health insurance accountability bill, is scheduled for a hearing in the House Rules Committee this Friday, May 15. 3:00pm in Hearing Room 50.

The hearing comes a week after Regence's whopping 14.7% rate hike was approved, down slightly from the even more whopping 19% they proposed. That's after the 26% hike approved last year, as folks following this story in the news (or in their own slim pocket books) will recall.

The bill is not a favorite among the health insurance lobbyists in Salem, who have found the time to try to kill it or water it down to nothingness, while simultaneously complaining about the proposed itty bitty tax on them slated to extend coverage for low income people and children.

Meanwhile, in the real world, soaring health care premiums and out-of-pocket costs are putting the squeeze on Oregon families and businesses. In our recent OSPIRG report, "Premiums On The Rise," we found that over 400,000 Oregonians are in individual or small business health plans with rates that jumped 4 times the rate of inflation in 2008.

This isn't what you call "sustainable" and we all know it. The Oregon Legislature has an opportunity to take real action this session, and they should not let it slip away. In addition to passing the health reform bill HB 2009, which focuses on reining in costs in the health care delivery system, Legislators should pass HB 3145 to give consumers and small businesses some relief from skyrocketing insurance rates.

The basic rundown on HB 3145:

• Clear Standards. Strengthens and clarifies standards a rate hike must meet show it is not excessive. State officials must consider criteria such as the insurer's full financial position, including surplus levels and investment income; and their efforts to cut waste and control costs while maintaining or improving the quality of health care.

• Transparency and Streamlining. Requires the Insurance Division to set rules standardizing required rate filing information from insurers, and clarifying what information, if any, should be exempt from public disclosure to protect trade secrets.

• Accountability. Gives affected consumers and businesses the ability to weigh in on a proposed rate increase before it goes into effect through a 30-day public comment period, and establishes a public hearing process.

The bill is sponsored by Rep. Chip Shields, and cosponsored by Rep. Brian Clem, Rep, Michael Dembrow, Rep. Larry Galizio, and Sen. Laurie Monnes Anderson. It is supported by the Department of Consumer and Business Services and the Oregon Health Fund Board. A coalition of 10 major organizations ranging from OSPIRG to SEIU, and from The Bus Project to AARP of Oregon, are advocating the bill's passage.