Introduced
by
To impose on health insurance companies writing policies for small employers and groups (less than 100 persons) a “rate band” pricing method along the lines of those devised by the National Association of Insurance Commissioners (NAIC). Price variations would be subject to statutory controls, so the cost for a small employer’s coverage could not be more than 25 percent above an insurance company’s average or index rate for a geographic region, despite the case characteristics of the employer. Insurers would determine their own index rates. “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 Health Policy
