Michigan House Passes Bill To Limit Health Insurance Rates
Tuesday Oct 30, 2007Michigan House Passes Bill To Limit Health Insurance Rates in Politics and Legislation
The Michigan House of Representatives passed legislation last week to limit the amount health insurance companies could raise rates when policyholders renew their plan, reported the Detroit News.
The package of bills would also require private insurers to pay into a risk pool to cover residents who can’t afford insurance. That coverage will be administered by Blue Cross Blue Shield of Michigan, the state’s largest non-profit health insurance company.
BCBS supports the bill, saying legislation is needed to prevent for-profit health insurers from drastically increasing rates when a policyholder develops a health condition. When residents are priced out of coverage, they turn to BCBS, who accepts all applicants. BCBS says they’re left to insure the sickest population.
Insurance companies and consumer advocate groups have formed the Coalition for Access and Affordability in Michigan to fight against the legislation’s passing. They contend the bills will drive insurance rates up and reduce the number of affordable coverage options. The coalition also opposes the creation of a risk pool.
The legislation is now headed to a state Senate committee for further approval.
Should Michigan Legislature be able to cap how much insurance companies in the state can raise rates?
