Vote Smart's Synopsis:

Vote to pass a bill that prohibits health insurers from increasing their rates without prior state approval.

Highlights:

• Prohibits any health care plan from increasing the premium, co-payment, coinsurance obligation, deductible, and other charges under the health care service plan contracts or health insurance policies that it charges its subscribers without approval by the Department of Managed Health Care or the Department of Insurance (Sec. 1).

• Specifies that this bill shall not apply to Medicare supplement contracts and dental-only contracts (Sec. 1).

• Prohibits any health care plan whose charge is considered excessive, inadequate or unfairly discriminatory by the Department of Managed Health Care or the Department of Insurance from remaining in effect (Sec. 1).

• Requires any health insurer seeking to increase the rate it charges its subscribers in 2012 and thereafter to submit an application for approval to the Department of Managed Health Care or the Department of Insurance (Sec. 1).

• Authorizes either the Department of Managed Care or the Department of Insurance to charge a health insurer a fee for the actual, reasonable costs associated with the review of its application (Sec. 1).

• Specifies that the money thus collected shall be deposited into the new Department of Managed Health Care Health Rate Approved Fund, the money in this fund being continuously appropriated to the department for the sole purpose of implementing this bill (Sec. 1).

• Specifies that departments will have the ability and resources to implement this bill no later than January 1, 2012 (Sec. 1).

Full Bill Text