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Oklahoma
State Senate
Communications Division
State Capitol
Oklahoma City, Oklahoma 73105
For Immediate Release: January 27, 2011
Sen. Garrison wants more transparency in health insurance rate increases
With consumers struggling to pay ever increasing insurance rates,
Sen. Earl Garrison wants insurance companies to be accountable to
citizens and justify any rate increases. Senate Bill 354 would ensure
that premium rate information relating to the individual accident
and health insurance market be readily available to the public
“In all other industries, companies publicly provide the prices
for each of their services and I don’t believe the insurance
industry should be any different. Consumers need to be able to easily
compare rates in order to make an informed decision on which insurance
is most affordable and fits their needs,” said Garrison, D-Muskogee.
“Making this information public should also help keep insurance
rates more competitive and dissuade companies from making unnecessary
rate hikes – saving consumers money.”
SB 354 would require the state Department of Insurance to post premium
rate filings and a consumer-friendly summary of such filings on
its website. The summary would explain changes in rate, actuarial
value, anticipated impact on premiums and any other information
the Department deemed necessary. Any justification for the proposed
rate increase provided by the insurer would also be disclosed on
the Department’s website.
“There have been numerous examples across the nation of companies
like Blue Shield in California trying to raise rates as much as
59 percent for some policy holders even though the company reports
multi-billion dollars profits year after year,” said Garrison.
“Consumers don’t have the time to call each company
to compare rates. Having all the information on one website will
make it easier for consumers to see what’s available and also
hold insurance providers accountable for their decisions.”
Garrison pointed out that Congress is also considering a proposed
federal rule that would require health insurers for individual and
small group policies to justify certain rate hikes. Under the rule,
rate increases of ten percent or more would have to be publicly
disclosed and reviewed to determine whether the hikes are reasonable.
For more information contact:
Senator Garrison: (405) 521-5533
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