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.”

Rep. Carroll Protects Patients from Medical Monopolies

Bill protecting patients from reductions in quality, access heads to Governor

DENVER –Representative Morgan Carroll (D-Aurora) has championed a bill to ensure patient care is not compromised when hospital sales take place.

It is a growing trend in the metro area for hospitals to merge in order to remain profitable.  Sometimes, patient care suffers as services are cut and re-structured.  “We have had hospitals merging at a cancerous rate in Colorado, at some times approaching monopolies,” Rep. Carroll explained.

She continued, “I cannot think of a more dangerous place for monopolies than in healthcare.  At a time when we are trying to increase access and improve quality of care, it is exactly the wrong time to eliminate access to key services.”

Under current law, the Attorney General is granted the authority to review all hospital transactions. The proposed law would further clarify the Attorney General’s authority to include the right to review the sales transaction if patient care could be compromised by the merger.  In addition, it gives the patient the right to a hearing prior to a merger.

“Hospital profits should not trump patient care, period. Our health should be their bottom line,” shared Rep. Carroll.

The bill, House Bill 08-1203 was approved by the full House today with a vote of 39 to 25.  The bill has cleared the Senate, where it is sponsored by Senator Betty Boyd (D-Lakewood) and now heads to the Governor’s desk.

-- Posted by staff

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).

-- Posted by staff

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.”

Health Coverage That Counts

F.A.I.R. – Fair & Accountable Insurance Rates – Act Introduced

(DENVER)  Last Sunday, state lawmakers announced a legislative agenda aimed at reducing the cost of health care. Today, the FAIR – Fair & Accountable Insurance Rates – Act, sponsored by Representative Morgan Carroll (D-Aurora) was introduced as House Bill 1389. 

The FAIR Act will empower Colorado’s Insurance Commissioner to watchdog insurance rate increases and insurance companies will be required to justify rate increases before they can take effect.

While the insurance industry is expected to oppose HB 1389, several business groups including The Association of Enterprise Opportunity, the Colorado Association of Micro-Enterprise Initiatives, Micro Business Development Center, and the Small Business Majority, have announced their support.

The bill will be sponsored in the Senate by Senator Paula Sandoval (D-Denver).

-- Posted by staff

F.A.I.R. – Fair & Accountable Insurance Rates -- Act to be Introduced Friday

(DENVER)  Last Sunday, state lawmakers announced a legislative agenda aimed at reducing the cost of health care.

Tomorrow, the FAIR – Fair & Accountable Insurance Rates – Act, sponsored by Representative Morgan Carroll (D-Aurora) will be introduced.  The FAIR Act will empower Colorado’s Insurance Commissioner to watchdog insurance rate increases and insurance companies will be required to justify rate increases before they can take effect.

"It's time to take on the insurance industry and their unjustified rate increases,” said. Rep. Carroll.  “Our health should be their bottom line.”

FACT: Colorado rates are 7^th from the top in cost compared to other states and have grown 60% over the past 5 years, yet we have one of the healthiest populations. (SOURCE: Association of Health Insurance Plans).

FACT: The insurance industry retained surplus of $600 billion as of the end of 2006, more than doubling recommended levels. (that’s in addition to reserves, claims, profits and admin) (SOURCE:  Consumer Federation of America, Jan. 8, 2007).

FACT: This $600 billion in surplus is more than the entire Gross Domestic Product of 193 countries.  (SOURCE:  CIA World Fact Book 2007, Wikipedia)

-- Posted by staff

Lawmakers Declare Victory in “War on SPAM”

(DENVER) – Representatives Morgan Carroll (D-Aurora) and Sara Gagliardi (D-Arvada) and State Senator Bob Hagedorn (D-Aurora) declared victory today as their “War on Spam” bill surges on to the Governor’s desk for his signature.

The Spam Reduction Act of 2008 holds spammers accountable for their illicit activities. After making some small changes, the Senate passed House Bill 1178 on 26-9 vote and then the House again supported the revised version on a vote of 62-2.

“Today the legislature sent a strong bi-partisan message – ENOUGH!” said Rep. Carroll.  “Colorado companies and average citizens spend too much time, energy and money sifting through ridiculous claims of million dollar paydays, ads for E.D. medications and various other schemes -- just to get to their personal emails. This will not do.”

The legislation will:
1) Help authorities pursue existing laws, including the federal CAN Spam Act of 2003. 
2) Allow Colorado maximum enforcement authority to hold junk e-mailers accountable by enacting harsh new civil and criminal penalties. 
3) Educate Colorado consumers on how to protect themselves against junk e-mailers, as well as to give them the resources to fight back.      

“Junk email costs the state millions of dollars annually in lost productivity and I.T. damage from email viruses,” said Rep. Gagliardi. “In December, we declared war on SPAM; today we declare victory: Mission (almost) Accomplished!” She was acknowledging that the bill still has to be signed into law (but others have been known to declare “mission accomplished” a wee bit early, too!).

Current estimates suggest that as many as 10.8 trillion junk emails will be generated and sent worldwide in 2007, many of which will not be blocked by existing filters.  The problem is estimated to cost the U.S. $70 billion in lost productivity and network maintenance annually.

Senator Hagedorn emphasized the risk that junk email poses to Colorado’s most vulnerable populations. “Spammers are using increasingly more sophisticated methods to target elderly folks and those with less computer know-how, conning them out of money and personal information like credit and social security numbers,” said the Senator.

Spam Fact Sheet:  Download SPAM.doc

-- Posted by staff

Healthcare Bills Aim to Cut Costs, Hold Insurance Industry Accountable

(Denver)  State lawmakers, joined by small business owners and consumers, announced a legislative package aimed at reducing the cost of health care at the state capitol today. The new legislation aims to watchdog health insurance companies’ rising rates and to push insurance companies to pay consumers what they are owed.

Representative Morgan Carroll (D-Aurora) will introduce legislation this week to empower Colorado’s Insurance Commissioner to watchdog insurance rate increases.  Under the FAIR Act—Fair & Accountable Insurance Rates – insurance companies will be required to justify rate increases before they can take effect.

"Expensive coverage equals no coverage for 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.  Rate increases should be justified so that we at least know why our rates go up when they do.  It's time to take on the insurance industry and their unjustified rate increases.  Our health should be their bottom line."

“Consumers should have basic information about why healthcare premiums are skyrocketing,” said Dede de Percin, Executive Director of the Colorado Consumer Health Initiative. “This bill establishes a fair and reasonable process to keep insurers from making excessive profits off the lives and health of hardworking Coloradans.”

House Speaker Andrew Romanoff and Senate Majority Leader Ken Gordon announced that they will introduce the “Insurance Accountability Act of 2008”, which will push insurance companies to pay consumers what they are owed for valid claims.

“Too many Coloradans have to fight their insurance company just to get what they already paid for," said the Speaker.  "Our message to the insurance industry is simple: 'Pay what you owe -- when you owe it.'"

“It’s our job in government to protect consumers from unfair business practices.  Insurance companies should be penalized for wrongful acts against consumers,” said Representative Gwyn Green (D-Golden). Rep. Green’s House Bill 1228, which allows Colorado’s Insurance Commissioner to penalize insurance companies for wrongful acts against consumers, awaits final approval in the general assembly.   

Peggy Mason told her story:  she is insured but her company won’t pay her claims. In October, she was diagnosed with a rare form of cancer. Her insurance company would not cover any treatment, not even a single x-ray.  She was told that her policy did not cover major medical care, even though her policy clearly states that it does and it was sold to her as a medical policy.  Her house, her savings, her car and her IRA have all been threatened. 

Small-business owner Rita Crompton told of her struggles to find affordable health insurance coverage for herself and her employees at her consulting business. Rita said that all of her employees work less than full-time and are uninsured. They take that risk rather than work elsewhere as full-time employees for less pay. Recently, Rita was forced to pay for a biopsy – upfront. Not having insurance is stressful for Rita, and she has had to make a difficult choice - making her premiums every month or paying her mortgage.

-- Posted by staff

Upcoming Town Hall Events

Saturday, March 22-Rep. John Kefalas, Rep. Randy Fischer, Senator Bob Bacon will host a town hall meeting on the topic of higher education from 9:30-11 a.m. at the Harmony Library Community Room, 4616 S. Shields, Fort Collins (Southeast corner of Harmony and Shields).

Saturday, March 22-Rep. Andy Kerr and Senator Betty Boyd will host a town hall meeting on aging baby boomers and long-term health care options from 9:30 to 11 a.m. at Lakewood United Church of Christ, 100 Carr St., Lakewood.

Saturday, March 22-Rep. Cheri Jahn and Senator Moe Keller will host a town hall meeting from 10:00 to 11:30 a.m. at the Wheat Ridge Senior Center at 6363 W. 35th Ave., Wheat Ridge.

Saturday, March 22-Rep. John Soper will host a mid session progress report from 10 a.m. to 12 noon at the Holiday Hills Clubhouse, 2001 W. 92nd Ave., Federal Heights.

Monday, March 24-Rep. Sara Gagliardi will host her monthly coffee on the fourth Monday from 7 a.m. to 8:30 a.m. at Billy D's Coffee, 14705 West 64th Ave (at Indiana), Arvada.

Saturday, March 29-Rep. Jim Riesberg will host a town hall meeting on Creative Support for People with Developmental Disabilities from 9 to 10:30 a.m. at Envision, 1050 37th St., Evans.

Saturday, March 29-Speaker Andrew Romanoff and Rep. Judy Solano will host a town hall meeting on the topic of health care from 10 a.m. to 12 noon at the Adams 12 Five-Star School Administration Building, 1500 E. 128th Ave., Thornton.

Saturday, March 29-Rep. Christine Scanlan will host a town hall meeting on aging baby boomers and long-term health care options from 2 to 3:30 p.m. at the Vail Town Hall, 75 South Frontage Road, Vail.

Friday, April 4-Rep. Mary Hodge and Senator Takis will host a town hall meeting from 7 a.m. to 8 a.m. at the Firestation #2, 3100 Peoria St., Aurora.

Friday, April 4-Rep. Nancy Todd will host a coffee from 7 to 8 a.m. at Panera, 12293 East Iliff Avenue, Aurora.

Saturday, April 5-Rep. Gwyn Green, Rep. Andy Kerr, Rep. Ken Summers and Senator Betty Boyd will host their monthly Lakewood town hall meeting, at the Belmar Public Library, 255 Allison Parkway, Lakewood, from 9:30 a.m. to 11:30 a.m.

Saturday, April 5-Speaker Andrew Romanoff and Rep. Christine Scanlan will host two town hall meetings: from 12 to 1:15 p.m. at French Press is 34295 Highway 6 #C-1-B, Edwards, and from 2:30 to 3:30 p.m. at Pug Ryans, 104 Village Place, Dillon.

Monday, April 7-Rep. Morgan Carroll will host Coffee with Carroll from 7 a.m. to 8 a.m. at East Steamers Coffee House, 360 S. Chambers Rd, Aurora.

Monday, March 7-Rep. Joe Rice will host his monthly coffee from 7 a.m. to 8 a.m. at the South Metro Camber of Commerce, 6840 S. University Blvd., Centennial.

No More Special Treatment for Special Districts

(DENVER) If Representative Morgan Carroll (D-Aurora) gets her way, “special districts” will no longer get special treatment and will be subject to the same election laws and scrutiny as other elected bodies. Her bill, HB 1259, passed on a 43-19 vote through the House today and now goes on to the Senate.

The “Special District Accountability Act of 2008” will ensure that homeowners are notified of special taxing districts for their property, and that they will have access to their district’s financial statements, audit information, and budgets. It will also add special district ballots to voters requesting permanent mail-in status so they can vote for their districts via mail and it will require the sending of an annual notice to electors with contact information, meeting times, board members, election information, etc.

Special Districts may be the fastest growing segment of government. There are approximately 1,300 Special Districts in Colorado. Just among select Metro-area districts there is currently over $255 billion in authorized but un-issued bond debt.

"Most citizens of Colorado live in multiple special districts and don't even know it, said Rep. Carroll. “There are too many rights and too much money at stake to have anything less than full transparency and full electoral rights to our citizens in these elections."

-- Posted by staff