F.A.I.R. – Fair & Accountable Insurance Rates — Act
Thursday, April 03, 2008
MAJORITY COMMUNICATIONS
STATE CAPITOL
Health Coverage That Counts
a legislative package for Colorado consumers
(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 7th 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)