A bill aimed at reducing health insurance premiums for employees of small businesses won initial Senate approval Monday over Republican objections it would force rate hikes for others.

"The purpose of health insurance is to spread the cost," sponsoring Sen. Bob Hagedorn, D-Aurora, said in pushing passage of the House Bill 1355.

The current system, he says, has "a chilling effect on people who utilize their benefits."

The bill, which has already passed the House, aims to reduce insurance costs for businesses with 50 or fewer workers by prohibiting insurers from considering employees’ health and claims histories. (more…)

FOR IMMEDIATE RELEASE: 4.11.07 CONTACT: Ben Davis 303.522.6790

Measure to prohibit rate increases based on employee health status and claims history passes today DENVER, CO: HB 1335, a measure to alleviate Colorado’s health care crisis, was approved in the first of two votes by the House of Representatives. The measure, sponsored by Representatives Anne McGihon and Tom Massey, will prohibit health insurance companies from rating up customers as a result of their health status or claims history. Under current law, health insurers are able to increase the cost of their premiums for customers with current or past health conditions. "High health insurance rates are a problem throughout Colorado because we are allowing insurance companies to increase their rates based on our health and our claims history." said Representative McGihon. "It’s time we change our health insurance system so that it isn’t only for the healthy." Despite strong opposition from the insurance industry, House members voted for the measure to reduce the challenges that small business owners and health care consumers face when trying to provide coverage for their employees. (more…)