 "If the federal government is offering
us a grant to look at
insurance rates, I think it is something that we should definitely
look into," said state Rep. Patricia Bellock, R-Hinsdale.With a
deadline in August, states could apply for one of two federal grants
totaling approximately $50 million to address "unreasonable" or
"excessive" insurance rate hikes. States can apply for up to a $3
million grant to cover three years or up to a $2 million grant to
cover two years to help improve transparency for consumers and to
hold companies accountable for insurance increases.
Steve Larsen, a spokesman for the U.S. Department of Health and
Human Services, said additional funding would improve how states
review proposed premium increases.
"The great news for consumers is that we know effective rate
review is already helping to moderate premium growth," he said. "In
Connecticut, for example, the state insurance commissioner there
rejected a proposed 19.9 percent premium increase that would have
raised costs for about 48,000 consumers there."
Illinois does not have the legal authority to approve or reject
proposed health insurance hikes. But additional funding would bring
the state one step closer to reaching that goal, said Michael
McRaith, director of the Illinois Department of Insurance.
"Rate approval authority in the Department of Insurance ... will
have significant long-term benefits for families and employers, so
that patients not only get the health care they need, but will
receive the financial security they paid for with their premiums,"
McRaith said.
The Illinois Department of Insurance was awarded a $1 million
grant last August and plans to apply again this year.
"If there are other grant opportunities that will further bolster
our effort to make health insurance companies accountable to policy
holders, we will pursue every grant opportunity that is available,"
McRaith said.
[to top of second column]
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President Barack Obama signed the Patient Protection and
Affordable Care Act into law last year, reforming the health care
system with the intent to lower costs and to expand coverage to more
than 31 million Americans. Critics blamed the health care overhaul
law for premium rate hikes, while supporters blamed the poor economy
for higher costs.
Because of rate hikes, families often end up without health
insurance, said Michael Miller, policy director for the national
nonprofit advocacy organization Community Catalyst, which "gives
consumers a voice in health care reform," according to its website.
"American families and small businesses, too often, they've been
the victim of premium rate shock, and state government in many cases
just lacks the resources to adequately scrutinize rates," Miller
said.
Additional money would give states more of an incentive to
conduct rigorous reviews, he said.
"I think it is really important now -- state budgets are still in
recovery mode from the recession -- that these additional resources
are really going to make a difference for families," Miller said.
[Illinois
Statehouse News; By DIANE S.W. LEE]
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