(CHICAGO) This afternoon, Illinois PIRG (Public Interest Research Group) was joined by State Representative Greg Harris (Chicago) and other Health and Consumer Advocacy groups to release a study that flies in the face of industry claims that increased regulation leads to higher prices for consumers.
Illinois PIRG’s new report, “Ensuring Accountability: Common Sense Policies for a Consumer-Oriented Health Insurance Market in Illinois” shows that increased cost containment, transparency, and accountability measures for the health insurance industry are sound public policy, and do not create higher premiums for consumers. Despite industry concerns, there is no direct statistical correlation between increased regulations and increased health insurance premium costs.
The new report comes on the eve of a vote on the Insurance Fairness Act in Springfield on Tuesday, March 10, 2009. Among other reforms, the bill sponsored by Representative Harris will ensure every Illinoisan will have access to affordable health insurance regardless of pre-existing conditions and increases the transparency and accountability of the insurance companies in Illinois.
“In Illinois, as more and more people lose their jobs, and their employee sponsored health care, the number of consumers trying to access health insurance through the individual market will rise,” said Emily Miller, Staff Attorney and Health Care Advocate with Illinois PIRG. “Making the individual market more accessible, affordable, and predictable for consumers does not have to come at the cost of higher premiums.”
In Illinois, insurance companies are allowed to deny coverage because of pre-existing conditions. They can spend as much of our premiums on their own profit as they please, typically spending only 70 cents per dollar on health care, with the rest going to line executive’s pockets. They can deny and revoke coverage even after policies are issued. And they can raise rates without any say from the state watchdog.
“It's time to reform health insurance in Illinois so that it works for Illinois families and small businesses, not for giant insurance corporations.” said Representative Harris.
Illinois PIRG recommends that the following policies be enacted immediately in Illinois:
• Advanced review of proposed premium rates;
• Minimum medical loss ratio requirement of 85 percent;
• Objective standards to define pre-existing conditions; and
• Medical underwriting to be completed at the time of application.
Further, broader health insurance reforms, including guaranteeing access for everyone, regardless of pre-existing conditions, and ending the practice of basing premiums on health status and gender are also sound public policy that do not cause higher premium costs for consumers.
Consumer-Health-Insurance-Report.pdf