More Issues and Answers

First, we need to propose legislation limiting the amount of surplus (this is money beyond claims reserves) of large, domestic, not-for-profit health insurers can have on hand to two months of paid claims.  This would result in a refund of $1.5 billion, mostly to individuals, small employers and school districts.  In effect, this would amount to a huge, targeted tax-cut. 

Second, we need to repeal the Democrat imposed (in 1994) premium tax on not-for-profit health insurers.  This would result in a reduction in premiums of approximately $150 million the first year and would remove a reason for employers to adopt self-funded plans. 

Third, we need to propose legislation that would eliminate the subsidy of those with health care coverage by those who are uninsured.  This would be accomplished by requiring health care providers to charge their "best" or lowest (excluding governmental plans such as Medicare, Medicaid and workers' compensation) prices to patients paying cash. 

Fourth, we need to propose legislation that would require plans covering state and local governmental employees to file financial information with the Office of Financial Management.  This is already the case for self-funded plans, but not for insured plans.  As discussed, there is one very large plan that has never revealed its financing. 

Fifth, we need to pass legislation that would cover every employed person in the State for health care.  The plan would cover so-called catastrophic conditions allowing employers and individuals to self-insure or buy insurance for amounts beneath a specific deductible.  The premium(s) would be collected quarterly by either L&I or another agency from employers, self-employed individuals and from unemployment insurance.  At $10 per month per adult and $5 per child, the deductible might be $100,000.

Credit Scoring

Currently all property and casualty insurance companies look at your credit score to set your rate. When this bill was introduced in Olympia I testified against the use of such information. The current Commissioner championed the bill and called it the best in the nation. He should have just said, "NO." In a case in front of the US Supreme Court Safeco Insurance testified that they raised rates on 90% of the policyholders. This is just a back door rate increase and it must stop.