|
Independence 24/7
is
part
of
the
24/7 Network of Local News and Community Directory
Web Sites, published by JJC Media.
The aim of the 24/7 Network is to provide local residents with
information about the area, prospective residents with a relocation
guide and advertisers with access to that traffic.
Posting information on the site is free. E-mail media releases,
pictures, video or information about your event or use this handy form!
For more information about advertising on the sites click here.
|
News
Governor
Culver
Imposes
Halt on Health Insurance Rate Hikes Pending Independent
Review
Posted 9 March
2010
Governor Chet Culver
Monday called for Wellmark to justify the 18% health insurance rate
increase to the 80,000 Iowans affected. In a letter sent today to
Insurance Commissioner Susan Voss, the Governor directs her office to
stay the recently-announced insurance premium increases awarded to
Wellmark Blue Cross-Blue Shield until a third-party, independent
actuary can review the file and determine whether the Division’s
processes used to award Wellmark the premium rate increases is
justified.
“I share the concerns of many Iowans that the recent health insurance
premium rate increases are a disturbing and unwelcomed surprise,” said
Governor Chet Culver. “I am directing Insurance Commissioner Voss to
take several actions that are intended to provide additional
protections for the interests of Iowa health insurance consumers.
The letter outlines four directives for the Insurance Commissioner:
- Hire a third-party
certified actuary, independent of any financial relationship with
Wellmark Blue Cross-Blue Shield, to conduct a secondary review of
Wellmark’s recently-approved request for health insurance premium rate
increases that are now scheduled to take effect on April 1, 2010.
Commissioner Voss is to take all necessary action to stay the
recently-approved increases at least until such time as the third-party
review has been completed and published for review by your Commission
and by the public.
- An independent,
qualified third-party actuary to conduct a secondary review be utilized
whenever any health insurance company that conducts business in the
State of Iowa submits a health insurance premium rate increase request
to your division.
- Seek any other
practical ways to inform and educate Iowans and our Office and members
of the Iowa General Assembly about the rate review processes and the
relationship between Iowa’s health care costs.
- Provide to the
Governor’s office an annual report, to be delivered no later than
November 15 of each year. Please include in that report a review
of current trends in health care costs, in general, and those in Iowa,
in particular, with an emphasis on how the costs of delivering health
care services relate to the amounts charged by health insurance
companies to Iowa’s consumers.
“The Culver-Judge
Administration we have been concerned about the interests of Iowa’s
consumers and vigilant in protecting them. As a result, Iowans in the
past three years have enjoyed the lowest automobile rates in the
nation, and competitive homeowner and medical malpractice rates,” said
Governor Chet Culver. “We can, and we will ensure that any rate
increases on 80,000 are fair and completely justified.”
Copy of the letter follows:
March 8, 2010
Susan Voss
Commissioner
Iowa Insurance Division
330 Maple Street
Des Moines, IA 50319-0065
Dear Commissioner Voss:
Given the recent issues about health insurance in Iowa and those
reported across the country, it is critical that we increase our
efforts to assist Iowans who are seeking access to affordable health
insurance options.
You and I, and our respective staffs, have had the opportunity to
communicate about these concerns and, consistent with those
discussions, I am now directing you immediately to take several actions
that are intended to provide additional protections for the interests
of Iowa health insurance consumers.
First, I direct you to hire a third-party certified actuary,
independent of any financial relationship with Wellmark Blue Cross-Blue
Shield (“Wellmark”), to conduct a secondary review of Wellmark’s
recently-approved request for health insurance premium rate increases
that are now scheduled to take effect on April 1, 2010 with respect to
Wellmark. This review is to be taxed as an expense to Wellmark,
and should not be borne by Iowa consumers. I further direct that you
take all necessary action to stay the recently-approved increases at
least until such time as the third-party review has been completed and
published for review by your Commission and by the public. I direct
that the independent reviewing actuary be provided full access to all
data submitted by Wellmark in support of its premium rate increase
request. Finally, as a part of this review process, I direct you
to instruct the independent third-party actuary to verify the processes
followed by your staff actuary in the recent rate increase approval
decision to assure that the Division is conforming to best practices in
its health insurance premium rate increase review processes.
Second, I direct that, going forward, the process I have outlined,
above,—one involving the retention of an independent, qualified
third-party actuary to conduct a secondary review—be utilized whenever
any health insurance company that conducts business in the State of
Iowa submits a health insurance premium rate increase request to your
division. Such independent reviews shall be charged as an expense
to the insurer-applicants, and shall not be assessed to Iowa
consumers. I direct that no such health insurance premium
increase requests be approved that are not supported by the findings of
these additional independent actuarial reviews.
Third, it is apparent that many Iowa citizens are not fully satisfied
with what they now understand about the Division’s health insurance
premium rate approval processes and any underlying reasons that may—or,
may not—justify health insurance premium rate increases.
Therefore, in addition to the steps I have outlined, I direct you to
seek any other practical ways to inform and educate Iowans and our
Office and members of the Iowa General Assembly about the rate review
processes and the relationship between Iowa’s health care costs and the
insurance rates that Iowa’s consumers are required to pay. I should
expect, at the very least, that existing practices with respect to the
Division’s dissemination of information to the public be reviewed and
that improvements be made with a goal of increasing public
understanding of these health care cost and health insurance premium
issues.
Fourth, I direct you to provide to the Governor’s office an annual
report, to be delivered no later than November 15 of each year.
Please include in that report a review of current trends in health care
costs, in general, and those in Iowa, in particular, with an emphasis
on how the costs of delivering health care services relate to the
amounts charged by health insurance companies to Iowa’s
consumers. The annual report should include information about
current cost drivers of health care, such as chronic care costs and
lifestyle-related costs and any other important elements. In order to
provide a consumer awareness overview of costs that are related to
health insurance premiums they are asked to pay, the report should
include information from one or more medical cost inflation indices
similar to the CPI. The document should also provide Iowans with easy
access to a summary of financial information that is already submitted
annually by health insurance companies to the Division by March 1 of
each year—such as the overhead costs claimed by insurance companies and
the compensation and bonuses paid to their executives.
Finding effective ways to assure that Iowans have access to quality,
affordable health care remains one of our great challenges. I
thank you in advance for your attention to these directives that are
intended to assist Iowa’s consumers in meeting this challenge head-on.
Sincerely,
Chester J. Culver
Governor of Iowa
|
|
The goal
of Independence 24/7 is to provide
the most up to date information possible!
Please let us know if anything on this site needs updating,
if your group is having an event,
or if you have a news story.
We publish a network of similar sites, The 24/7 News Network.
If your information is about more than 1 of our sites,
we put it on all those sites.
e-mail Information to:
info@buchanan247.com
Or
Post information Using the Form Below:
|
Please Support this
Site by Clicking on Our Sponsor's Ads
 
 
|
