Among the legislative proposals this year: Bill to limit increases in insurance rates non-profit ', or other activities of the company will develop over a certain level.
This will allow insurers a substantial cash cushion for unforeseen emergencies, but also help to keep premiums to grow more than necessary.
Background: The insurance company, the nature of their activities, collect and invest large sums. They need to do this in order to pay claims. They must comply with the solvency to ensure that the company can make its promises to policyholders. If in doubt, we can take charge and try to rehabilitate them so that policyholders and providers are protected.
But at this stage, the state with three major non-profit insurers (Regence, Premera, and a group of health) are large surpluses, which have grown substantially over the last 8 years. Together they have more than $ 2 billion more than they expect to pay a claim. At the same time - this is a surprise to anyone - health insurance rates have risen drastically.
So, We are looking for an explicit mandate to consider the surplus - and income - if you look at the proposed rates.
Here is what they seem to be leftovers. (Capital and surplus means the balance of the assets after making requests for payment):
This will allow insurers a substantial cash cushion for unforeseen emergencies, but also help to keep premiums to grow more than necessary.
Background: The insurance company, the nature of their activities, collect and invest large sums. They need to do this in order to pay claims. They must comply with the solvency to ensure that the company can make its promises to policyholders. If in doubt, we can take charge and try to rehabilitate them so that policyholders and providers are protected.
But at this stage, the state with three major non-profit insurers (Regence, Premera, and a group of health) are large surpluses, which have grown substantially over the last 8 years. Together they have more than $ 2 billion more than they expect to pay a claim. At the same time - this is a surprise to anyone - health insurance rates have risen drastically.
So, We are looking for an explicit mandate to consider the surplus - and income - if you look at the proposed rates.
Here is what they seem to be leftovers. (Capital and surplus means the balance of the assets after making requests for payment):
Our proposal would work like this: When an insurer has enough to pay expected claims, plus a further report by three months the average loss, we do not accept the interest rate, which brings more surplus. (Exceptions may be granted, however, if the limit would threaten the solvency of the insurer.)
The three listed insurance companies have surplus equivalent to 4.5 months of their claims. There was still a significant cash cushion for unexpected expenses, but we believe that our proposal also would help keep premiums down.
The proposal would affect insurance lines that have the power to revise the rates: the small group coverage.
The legislative session begins next week. Stay tuned.
The three listed insurance companies have surplus equivalent to 4.5 months of their claims. There was still a significant cash cushion for unexpected expenses, but we believe that our proposal also would help keep premiums down.
The proposal would affect insurance lines that have the power to revise the rates: the small group coverage.
The legislative session begins next week. Stay tuned.
