Introduced
by
To require that health insurance companies writing policies for small companies and groups (less than 100 persons) use a “rate band” pricing method, which prohibits policy prices from being based on criteria other than age, family composition, and geographic area. Prices variations based on these factors are limited, so that the highest cost group cannot be more than 200 percent to 400 percent greater than the lowest cost group, depending on the criteria. “Cherry picking,” by insurers, or only insuring the healthier members of a group, would be restricted by allowing an insurer to require that at least 75 percent of a group’s members be included under a policy.
Referred to the Committee on Insurance and Financial Services
