NEWS
3/8/2010 2:26:00 PM
Culver seeks stay on Wellmark premium hike
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Gov. Chet Culver has directed Iowa Insurance Commissioner Susan Voss to initiate a stay on a rate increase on individual health insurance policies recently announced by Wellmark Blue Cross and Blue Shield.
Wellmark has notified approximately 80,000 individual health insurance policy holders in Iowa that their rates will increase by an average of 18 percent on April 1.
The stay on the premium increase would be effective until a third-party, independent actuary can review the file and determine whether the insurance division's processes used to award Wellmark the premium rate increases is justified, Culver said.
"I share the concerns of many Iowans that the recent health insurance premium rate increases are a disturbing and unwelcomed surprise," Culver said in a press release. "I am directing Insurance Commissioner Voss to take several actions that are intended to provide additional protections for the interests of Iowa health insurance consumers.
The letter outlines four directives for the insurance commissioner:
- Hire a third-party certified actuary, independent of any financial relationship with Wellmark Blue Cross-Blue Shield, to conduct a secondary review of Wellmark's recently-approved request for health insurance premium rate increases that are now scheduled to take effect on April 1, 2010. Commissioner Voss is to take all necessary action to stay the recently-approved increases at least until such time as the third-party review has been completed and published for review by your Commission and by the public.
- An independent, qualified third-party actuary to conduct a secondary review be utilized whenever any health insurance company that conducts business in the State of Iowa submits a health insurance premium rate increase request to your division.
- Seek any other practical ways to inform and educate Iowans and our office and members of the Iowa General Assembly about the rate review processes and the relationship between Iowa's health care costs.
- Provide to the governor's office an annual report, to be delivered no later than Nov. 15 of each year. Please include in that report a review of current trends in health care costs, in general, and those in Iowa, in particular, with an emphasis on how the costs of delivering health care services relate to the amounts charged by health insurance companies to Iowa's consumers.
"The Culver-Judge Administration we have been concerned about the interests of Iowa's consumers and vigilant in protecting them. As a result, Iowans in the past three years have enjoyed the lowest automobile rates in the nation, and competitive homeowner and medical malpractice rates," Culver said.
"We can, and we will ensure that any rate increases on 80,000 are fair and completely justified."
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Posted: Wednesday, March 10, 2010
Article comment by:
Peter Schneider
How about looking into the health insurance premium increases on GROUP health policies??? Ours continues to go up, up, up, year after year.
Posted: Monday, March 08, 2010
Article comment by:
Sheila Hansen
I think this is fair to all. 18% increase would have been great, unfortunately, my 19 year old daughter's (very healthy) was 308% increase. Thanks for the stay.
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