$80M In Health Insurance Waste Cut Since 2010 In Ore.
|Targeted News Service|
Since 2010, close scrutiny of health insurance rate hikes has cut over
Key findings of
* Stronger rate review has cut over
* State officials have cut rate hikes over 17 percent on average. Prior to the 2010 reforms, state regulators trimmed rate increases by an average of only 6 percent.
* Since 2010, rate review decisions have reduced the portion of premium spent on administrative costs by 5.4 percent on average, a reversal of a trend toward higher administrative costs before 2010.
"Heightened scrutiny of rate increases has been associated with real progress toward a more cost-effective health insurance system," said O'Brien. "
Key recommendations of the report
* Strengthen standards for insurer cost containment and quality improvement efforts. By focusing on insurer payment strategies, rate review can help drive systemic reforms to improve safety, increase care coordination, boost prevention, and bring down costs for consumers and small businesses.
* Preserve and strengthen the integrity of the process. Insurers should not be allowed to raise rates without being held accountable to a robust review of all data necessary that evaluate the reasonableness of their stated projections of future cost growth.
* Make rate review more transparent and user-friendly. Consumers and small businesses should be notified of pending rate requests that affect them, and informed of opportunities to comment on proposed increases. Consumers should also be able to determine the impact of a rate request on their own premium without difficulty.
"Health insurance rate review is an important tool to create some accountability for cutting waste in the health care delivery system," said
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