Oklahoma City, OK 73105
For Immediate Release: April 3, 2009
Sen. Kenneth Corn
Corn Amendment Prohibits Bonuses to Insurance Employees who Deny
Corn this week successfully amended House Bill 1055 to include
a provision that would prohibit insurance companies from awarding
bonuses to employees who deny claims.
Corn said the practice of incentive-based claims
denial is unethical.
“Insurance companies shouldn’t be in
the business of lining the pockets of those who deny medical services
to their customers,” said Corn, D-Poteau. “It’s
an unethical practice that needs to come to an end in Oklahoma.
This should bring consumers closer to the level of medical care
they are paying for.”
Corn noted that awarding monetary incentives for
claims denials provides employees with the incentive to go beyond
the normal review process to justify the denial of a claim. In
recent years, a number of states have successfully implemented
similar legislation regarding incentive-based claims denial.
Corn unsuccessfully offered a second amendment that
would have required insurance companies to provide justification
for rate increases. Corn said that the burden of proof that rates
are fair should rest upon insurance providers.
“Insurance providers shouldn’t be able
to sharply increase rates without first proposing adequate justification,”
Corn said. “Under current law, insurance providers are not
required to give the Insurance Commissioner time to object to
major rate increases. This would provide important protection
for Oklahoma consumers.”
House Bill 1055 was approved this week by the Senate
Committee on Retirement and Insurance. It now advances to the
full Senate for consideration.
For more information contact:
Sen. Corn's Office: 405-521-5576