Colorado House Democrats

FAIR Healthcare Bill and Insurance Accountability Act Go to Governor

(Denver)  Two major pieces of health insurance reform overcame fierce resistance and passed through the legislature in its final hours today.

Legislators supported the FAIR Act (Fair & Accountable Insurance Rates) which aims to drive down health insurance companies’ rising rates.  The final version of the bill passed out of the House on a 42-22 vote and now awaits the Governor’s signature.

The bill, sponsored by Representative Morgan Carroll (D-Aurora) and Senator Paula Sandoval (Denver,) will empower Colorado’s Insurance Commissioner to watchdog proposed insurance rate increases.  Insurers will be required to justify rate increases before they can take effect.

In explaining House Bill 1389, Rep. Carroll said: “If it seems like we are paying more for less, it’s because we are.  Consumers are unhappy with ever-increasing rates and ever-declining coverage. The FAIR Act begins to address that by making sure that our health care is the insurance industries’ bottom line.”

“The implications of over-priced health care are obvious: The primary reason people go uninsured or that businesses drop health insurance coverage is because premiums are not affordable,”  Said Rep. Carroll. “Yet, Colorado law does not require insurance companies to justify their rate increases before they take effect.  That means there is no meaningful oversight on insurance rates in Colorado.  There is not real competition in the market to drive down prices.”

Romanoff Passes Bill Requiring Insurance Companies to Pay What They Owe, When They Owe It

DENVER – Today, Speaker of the House Andrew Romanoff’s “Insurance Accountability Act of 2008” passed the House on a bi-partisan 42-22 vote.  The proposal will push insurance companies to pay consumers what they are owed for valid claims.

“Our message to insurers is simple: ‘Pay what you owe – when you owe it,’” said Speaker Romanoff.  “If people buy insurance and pay their premiums on time, it’s only fair that the insurance companies honor their commitment to their policyholders.” 

House Bill 1407, also sponsored by Senate Majority Leader Ken Gordon, strengthens the ability of the Insurance Commissioner to deter unreasonable conduct by an insurer; helps consumers recover their damages; and clarifies the definition of restitution.

Specifically, the bill provides the Division of Insurance increased authority to penalize bad conduct by state regulated insurance companies. 

It also prohibits insurance companies from unreasonably delaying or denying benefits owed to policyholders.  If an insurance company unfairly denies a legitimate claim, customers can take their insurance company to court.  In instances where a claim has been illegally denied, insurance companies would be directed by the court to pay the policyholder twice the full benefits owed plus insurance fees.      

“Too many consumers are trapped in an endless cycle of denials and appeals and delays,” he continued. “This bill will help ill and injured Coloradans recover their damages and get on with their lives.”

The bill now heads to the Senate for further debate.

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Romanoff Pushes Coverage That Counts

“PAY WHAT YOU OWE, WHEN YOU OWE IT”

DENVER – Speaker of the House Andrew Romanoff’s “Insurance Accountability Act of 2008” received initial approval from the House this afternoon. The proposal will push insurance companies to pay consumers what they are owed for valid claims.

“Our message to insurers is simple: ‘Pay what you owe – when you owe it,’” said Speaker Romanoff.

“Too many consumers are trapped in an endless cycle of denials and appeals and delays,” he continued. “This bill will help ill and injured Coloradans recover their damages and get on with their lives.”

House Bill 1407, also sponsored by Senator Ken Gordon (D-Denver), strengthens the ability of the Insurance Commissioner to deter unreasonable conduct by an insurer; helps consumers recover their damages; and clarifies the definition of “restitution.”

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Major Cancer Prevention Bill Passes House

Screenings that cost $3,000 now could soon cost less than $65

DENVER – Nearly half of those diagnosed with colon cancer could be saved if they had access to timely screening, according to the American Cancer Society.  Unfortunately, colonoscopies and other types of screenings are extremely pricey, even for those with insurance.  Depending on the co-payment, which can vary significantly, the average deductible for colorectal cancer screenings can range from $300 to $5,000, making testing particularly cost prohibitive, even for those with insurance.

But today, the House of Representatives passed one of the most significant health care bills in years, making early cancer tests more affordable.  House Bill 1410, sponsored by State Representative Andy Kerr (D-Lakewood), directs insurance companies to provide the most common colon cancer screenings with co-payments of no more than $65.

“This bill ensures Coloradans get health care coverage that counts,” said Rep. Kerr. “Early screening can be the difference between catching a polyp early, maybe before it is cancerous, and waiting until it is too late.”

Although it is only the 4th most common type of cancer, colon cancer has the 2nd highest mortality rate in Colorado, trailing only lung cancer.  It's expected that 1,840 cases of colon cancer will be diagnosed in Colorado during 2008.

The bill passed out of the House today by a vote of 42 to 22.  It now goes to the Senate where it is being carried by State Senator Lois Tochtrop (D-Thornton).

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More Bang for the Health Care Buck

Gagliardi: “We don’t need to shuffle paperwork the way we did in 1908”

(Denver)  State Representative Sara Gagliardi (D-Arvada) knows first hand that doctors, nurses and staff should spend more time with patients, and less time shuffling paperwork.  She has been a public health nurse for over 30 years.

“As a nurse, I know first hand the crazy amount of red tape and paperwork that healthcare providers and patients deal with. We don’t need to shuffle paperwork the way we did in 1908,” Rep. Gagliardi stated. “It is 2008 and we can and should get more bang for our healthcare buck,” she concluded.

She is working to cut red tape and reduce administrative overhead by sponsoring Senate Bill 135 with Senator Sean Mitchell (R-Broomfield). The proposal is part of Governor Ritter’s “Building Blocks to Health Care Reform" and identifies strategies for quality improvement and cost containment.  The bill passed the House on an initial voice vote today.

The bill will streamline burdensome paperwork, making it easier for doctors, nurses and patients to interact with insurance companies.  In addition, it will identify long term strategies for ensuring a better value for the $30 billion spent on health care in Colorado every year. 

Specifically, Senate Bill 135 creates standardized health plan ID cards that patients carry in their wallets.  Using this 21^st century technology will allow for electronic exchange of information between doctors, patients and insurance companies.

“It’s great when we can come up with an idea and that the governor, industry, and patient advocates get behind,” said Mitchell.  “This kind of buy-in is important when we move forward to make health care better, more convenient and less expensive.”

"To build a stronger health care system we must streamline processes and improve efficiency. I am so pleased to see strong bi-partisan support for this standard ID card bill that was a 208 Commission recommendation and part of my Building Blocks to Health Care Reform package. I look forward to signing it when it gets to my desk."

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Consumers Win First Round

Speaker to Insurance: “Pay What You Owe, When You Owe It”

DENVER – Speaker of the House Andrew Romanoff’s “Insurance Accountability Act of 2008” cleared its first hurdle today with a vote of 6-4 in the House Business Affairs & Labor Committee. The proposal will push insurance companies to pay consumers what they are owed for valid claims.

“All we are asking the insurance industry to do is ‘Pay what you owe – when you owe it,’” said Speaker Romanoff.

Several consumers testified in support of House Bill 1407 Thursday, saying fighting with insurance companies can be an endless frustration that often yields few results.  Many have grown so accustomed to regular denials that they come to expect every claim to be denied.  Sometimes the delays resulting from denials can lead to death.

“Injured and ill Coloradans should not be forced to exhaust their time and resources just to get what they are deserve,” Romanoff continued.

The Speaker’s bill strengthens the ability of the Insurance Commissioner to deter unreasonable conduct by an insurer; helps consumers recover their damages; and clarifies the definition of “restitution.”

House Bill 1407 now heads to the House Appropriations Committee for consideration.  The bill is co-sponsored by Senator Ken Gordon (D-Denver).

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House Passes FAIR Act to Keep Healthcare Costs Down

(Denver)  Health insurance is too expensive and there’s no good reason why.  That’s what legislators said today as they supported the FAIR Act (Fair & Accountable Insurance Rates) which aims to drive down health insurance companies’ rising rates.  The bill passed out of the House with an initial voice vote and no major amendments.

Representative Morgan Carroll (D-Aurora) wants to empower Colorado’s Insurance Commissioner to watchdog proposed insurance rate increases.  Under the FAIR Act, insurers will be required to justify rate increases before they can take effect.

In explaining House Bill 1389, Rep. Carroll said: “If it seems like we are paying more for less, it’s because we are.  Consumers are unhappy with ever-increasing rates and ever-declining coverage. The FAIR Act begins to address that by making sure that our health care is the insurance industries’ bottom line.”

She presented facts and figures to make her case: “For a typical family of four in Denver, premiums increased more than 140% in five years; wages increased only 15% in the same time.  Colorado rates are the 7^th most expensive in the country, yet we have one of the healthiest populations in the U.S.”

“The implications of over-priced health care are obvious: The primary reason people go uninsured or that businesses drop health insurance coverage is because premiums are not affordable.  Yet, Colorado law does not require insurance companies to justify their rate increases before they take effect.  That means there is no meaningful oversight on insurance rates in Colorado.  There is not real competition in the market to drive down prices.”

“The FAIR Act creates a watch-dog over the insurance industry to work on behalf of families and businesses.  When rates do go up, we will track the reasons why and make that information available to the public.  We will track how much of premium dollars go to actual benefits in what is called a benefits ratio.  This kind of law enabled California to save consumers $700 million last year because the insurance rates were found to be excessive and unjustified by the Insurance Commissioner.”

38 other states require prior review and approval before insurance rate hikes can take effect. 

"Expensive coverage equals no coverage for many Colorado families and businesses. Insurance rates are out of control, driving up the number of uninsured and increasing costs for everyone," said Rep. Carroll.  "Coloradans have been paying more for less every year. It's time to challenge unjustified rate increases.  Our health should be their bottom line."

The bill now moves to the Senate where it is sponsored by Senator Paula Sandoval (D-Denver).

FACTS:

• Insurance companies spend about $98 billion in excess administrative costs per year.  (As a comparison, it would cost $77 billion per year to provide full medical care to all of America’s uninsured.).  (SOURCE: McKinsey & Company Jan. 2007
• The insurance industry is one of the most profitable industries in the U.S., yielding over $18 billion in profits in 2007. (SOURCE:  Fortune Apr. 30, 2007
• Insurance CEO’s were paid salaries over $300 million with almost $650 million in stock options in 2007, not counting expense accounts or bonuses. (SOURCE: Fortune)
• The insurance industry spent $1 billion on lobbying from 1998 – 2007. (SOURCE: Open Secrets.org)
• The insurance industry retained a surplus of $600 billion in 2006, more than double recommended levels. (in addition to reserves, claims, profits & admin) (SOURCE: Consumer Fed. of America, 1/8/07).

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Shopping for Health Insurance?

Help is on the Way with New Consumer Guide

(Denver) Frustrated consumers, human resources staff and business owners shopping for health insurance will have a new tool for selecting a policy that
fits their needs.  House Bill 1385 would create an apples-to-apples consumer guide to shopping for health insurance.

As part of the Governor Bill Ritter’s “building blocks for healthcare reform” plan, House Bill 1385 is sponsored by State Representative Dianne
Primavera (D-Broomfield). 

“Too often, Coloradans are forced to compare apples to oranges to bananas when they are looking at health insurance policies,” Rep. Primavera explained. “The good news is that help is on the way for frustrated consumers, human resource reps, and business owners.”

Charley Shimanski, President of the Colorado Nonprofit Association, supports the consumer guide too. “By comparing policies apples to apples, nonprofits will be able to save time, money and frustration when shopping for health insurance,” he said.

In addition, the bill will shine light on the commission fees that insurance brokers earn when selling insurance policies. This is a common practice in other industries.  In the real estate industry, brokers must disclose what their commission is when selling a house. Consumers will also be able to file complaints if they are dissatisfied with their policy.

Rep. Primavera explained, “We are creating transparency in the health care system by requiring insurance brokers to tell customers how much commission they make on each policy they sell.”
   
The House passed the bill today on a bi-partisan 49 to 16 vote and now heads to the Senate for full consideration, where it is sponsored by Senator Gail
Schwartz (D-Snowmass Village).

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FAIR Healthcare Bill Strengthens Insurance Watchdog to Keep Costs Down

(Denver)  State lawmakers heard dozens of Coloradans testify today, all with one refrain:  health insurance is too expensive and there’s no good reason why.  They supported new legislation, called FAIR, for Fair & Accountable Insurance Rates, which aims to drive down health insurance companies’ rising rates. As of 5:45 PM, the House Business Affairs Committee was still hearing testimony and had not yet voted.

Sponsors Representative Morgan Carroll (D-Aurora) and Senator Paula Sandoval (D-Denver) want to empower Colorado’s Insurance Commissioner to watchdog proposed insurance rate increases.  Under the FAIR Act, insurers will be required to justify rate increases before they can take effect.

In explaining House Bill 1389, Rep. Carroll said: “If it seems like we are paying more for less, it’s because we are.  Consumers are unhappy with ever-increasing rates and ever-declining coverage. The FAIR Act begins to address that by making sure that our health care is the insurance industries’ bottom line.”

She presented facts and figures to make her case: “For a typical family of four in Denver, premiums increased more than 140% in five years; wages increased only 15% in the same time.  Colorado rates are the 7^th most expensive in the country, yet we have one of the healthiest populations in the U.S.”

Shopping for Health Insurance?

Help is on the Way with New Consumer Guide

(Denver) Frustrated consumers, human resources staff and business owners shopping for health insurance will have a new tool for selecting a policy that fits their needs.  House Bill  1385 would create an apples-to-apples consumer guide to shopping for health insurance.   

As part of the Governor Bill Ritter’s “building blocks for healthcare reform” plan, House Bill 1385 is sponsored by State Representative Dianne Primavera (D-Broomfield). 

“Too often, Coloradans are forced to compare apples to oranges to bananas when they are looking at health insurance policies,” Rep. Primavera explained. “The good news is that help is on the way for frustrated consumers, human resource reps, and business owners.”

Charley Shimanski, President of the Colorado Nonprofit Association, supports the consumer guide too. “By comparing policies apples to apples, nonprofits will be able to save time, money and frustration when shopping for health insurance,” he said.

In addition, the bill will shine light on the commission fees that insurance brokers earn when selling insurance policies. This is a common practice in other industries.  In the real estate industry, brokers must disclose what their commission is when selling a house. Consumers will also be able to file complaints if they are dissatisfied with their policy.

Rep. Primavera explained, “We are creating transparency in the health care system by requiring insurance brokers to tell customers how much commission they make on each policy they sell.”
   
The bill passed out of committee on a 7-2 vote and now heads to the Appropriations Committee. The bill is also sponsored by Senator Gail Schwartz (D-Snowmass Village).

-- Posted by staff