Bill Text: HI HB2525 | 2014 | Regular Session | Amended
Bill Title: Health Insurance; Rates; Community Rating; Premiums
Spectrum: Partisan Bill (Democrat 6-0)
Status: (Introduced - Dead) 2014-02-27 - The committee(s) on FIN recommend(s) that the measure be deferred. [HB2525 Detail]
Download: Hawaii-2014-HB2525-Amended.html
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HOUSE OF REPRESENTATIVES |
H.B. NO. |
2525 |
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TWENTY-SEVENTH LEGISLATURE, 2014 |
H.D. 2 |
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STATE OF HAWAII |
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A BILL FOR AN ACT
RELATING TO HEALTH INSURANCE RATES.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
PART I
SECTION 1. Section 431:14G-103, Hawaii Revised Statutes, is amended to read as follows:
"[[]§431:14G-103[]]
Making of rates[.]; community rating. (a) Rates shall not be excessive, inadequate,
or unfairly discriminatory and shall be reasonable in relation to the costs of
the benefits provided.
(b) Except to the extent necessary to meet subsection (a), uniformity among managed care plans covering more than fifty members in any matters within the scope of this section shall be neither required nor prohibited.
(c) Rates for individual plans and plans covering more than one member and less than fifty-one members shall be established pursuant to community rating.
For the purposes of this subsection, "community rating" means a rating methodology in which the premium for all persons covered by a policy or contract form is the same, based upon the experience of the entire pool of risks covered by that policy or contract form without regard to age, sex, health status, tobacco use, or occupation."
PART II
SECTION 2. (a) The Hawaii health connector shall establish a temporary premium subsidy program to offset all or some of the increases in health insurance premiums that result from the application of age-based premium ratings in compliance with section 1201 of the federal act. The subsidy shall be available to persons that purchase qualified plans through the Hawaii health connector. The temporary premium subsidy program shall apply to qualified plans in the individual market and the small group market purchased through the connector.
(b) For plan years beginning on or after January 1, 2014, through December 31, 2016, the Hawaii health connector shall pay to a person that purchases a qualified plan through the Hawaii health connector a premium subsidy amount that is determined by the commissioner as provided in subsection (c).
(c) In accordance with rules adopted pursuant to subsection (d), the insurance commissioner shall determine the amount of the premium subsidy to be paid pursuant to subsection (b) and shall transfer this amount to the Hawaii health connector for the purposes of funding the temporary premium subsidy program.
(d) The Hawaii health connector, in consultation with the insurance commissioner, shall develop rules and procedures to establish subsidy amounts and administer the temporary premium subsidy program.
(e) As used in this section:
"Federal act" means the Patient Protection and Affordable Care Act (Public Law 111-148), as amended, and any regulations adopted thereunder.
"Qualified plan" shall have the same meaning as defined in section 435H-1, Hawaii Revised Statutes.
SECTION 3. There is appropriated out of the general revenues of the State of Hawaii the sum of $ or so much thereof as may be necessary for fiscal year 2014-2015 for the purposes of the temporary premium subsidy program established pursuant to this part.
The sum appropriated shall be expended by the department of commerce and consumer affairs for the purposes of this part.
PART III
SECTION 4. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.
SECTION 5. This Act shall take effect on July 1, 2112.
Report Title:
Health Insurance; Rates; Community Rating; Premiums
Description:
Requires individual health insurance plans and small group plans to establish rates based upon community rating. Creates a temporary premium subsidy program to offset certain rate increases for qualified plans purchased through the Hawaii Health Connector. Effective 07/01/2112. (HD2)
The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.
