Here & Now

Larson Describes Bill To Regulate Health Insurance Rates

FREDERICA FREYBERG:

ALSO AT THE CAPITOL, A PUSH TO MAKE SURE THE STATE IS IT KEEPING A CLOSE EYE ON THE RISING COST OF HEALTH INSURANCE IN WISCONSIN.

MILWAUKEE DEMOCRATIC CHRIS LARSON IS SENATE SPONSOR OF A BILL TO REQUIRE THE STATE INSURANCE COMMISSIONER TO STRICTLY REVIEW RATE HIKES BECAUSE FOR 2016 SIX WISCONSIN INSURANCE COMPANIES PROPOSED RAISING RATES BETWEEN 10% AND 33%. PROVISIONS OF THE BILL INCLUDE THESE REQUIREMENTS: INSURERS WOULD HAVE TO GIVE CONSUMERS 60 DAYS NOTICE OF A RATE INCREASE, REQUIRE A PUBLIC HEARING FOR AN INCREASE OVER 10% AND GIVE THE STATE INSURANCE COMMISSIONER AUTHORITY TO DENY RATE HIKES NOT JUSTIFIED BY INCREASED MEDICAL COSTS. SENATOR LARSON JOINS US NOW FROM MILWAUKEE AND THANKS VERY MUCH FOR DOING SO.

CHRIS LARSON:

THANKS FOR HAVING ME.

FREDERICA FREYBERG:

SO WHY IS THIS NEEDED?

CHRIS LARSON:

WELL, HEALTH CARE COSTS CONTINUE TO RISE, AND WE BELIEVE, LOOK, THERE ARE TOOLS THAT WERE GIVEN TO US BY THE ACA, BY OBAMACARE, TO BE ABLE TO KEEP RATES DOWN. OTHER STATES ARE USING THAT. OTHER STATES ARE USING THESE TOOLS, CALLED RATE REVIEW, WHERE WHENEVER AN INSURANCE COMPANY DECIDES TO RAISE A RATE, THE INSURANCE COMMISSIONER CAN ACTUALLY DENY OR PUBLISH AND SAY, LOOK, THESE RATES ARE TOO EXCESSIVE. THIS COMMISSIONER, GOVERNOR WALKER’S INSURANCE COMMISSIONER, HAS NOT SAID A SPECIFIC — ANY OF THESE RATES THAT HAVE INCREASED, AS YOU SAID, SOME OF THEM UP TO 33%. HE DOESN’T THINK ANY OF THOSE ARE EXCESSIVE AND THEY’VE SAID EVERY ONE OF THEM IS FINE. WE THINK HEALTH CARE RATES ARE TOO HIGH. THIS BILL WILL CREATE DOWNWARD PRESSURE TO MAKE SURE HEALTH CARE IS MORE AFFORDABLE FOR CONSUMERS.

FREDERICA FREYBERG:

SO YOU’RE SUGGESTING THAT THE STATE INSURANCE COMISSIONER’S OFFICE IS JUST GREEN LIGHTING THESE PREMIUM HIKES WITHOUT DOING AN ADEQUATE REVIEW? OR WHAT’S THE MOTIVATION FOR THE GREEN LIGHTING?

CHRIS LARSON:

YOU HAVE TO ASK THEM, BUT BASICALLY WHAT ENDS UP HAPPENING, WE CAN SEE THE RESULTS OF IT, IS THEY THINK THAT THEY WORK FOR THE INSURANCE COMPANIES, NOT THE CONSUMERS. AND I THINK WHEN THEY SAY, LOOK, WE PUBLISH THEM OR ANYTIME THAT A RATE COMES OUT, THEY ACKNOWLEDGE IT AND SAY, YEP, THAT’S ACCEPTABLE, WE’RE NOT GOING TO DO ANYTHING TO MAKE YOU SLOW HOW MUCH YOU’RE INCREASING RATES. AND AS WE’VE SEEN, OUR RATES GO UP HIGHER. WE ACTUALLY HAVE THE FOURTH HIGHEST RATES IN THE NATION FOR THE SINGLE PLAN THAT’S COMPARED STATE BY STATE. AND SO THE PROOF SHOWS THAT WE’RE ACTUALLY PAYING MORE FOR OUR HEALTH CARE, BUT WE’RE NOT GETTING ANY HEALTHIER FOR THAT. THE INSURANCE COMPANIES ARE GETTING MORE MONEY. THERE’S TOOLS OUT THERE THEY COULD USE. THIS BILL WILL ACTUALLY MAKE THAT EVEN BETTER THAT THEY CAN DO.

FREDERICA FREYBERG:

THE OFFICE OF THE COMMISSIONER OF INSURANCE COULD NOT JOIN THIS CONVERSATION TODAY BUT THEY DID SEND US A NOTE, INCLUDING THIS. THEY SAY THE RATE FILINGS ARE REVIEWED BY AN OUTSIDE ACTUARY TO ENSURE THAT THE RATES ARE ACTUARILY SOUND. IT IS IMPORTANT TO ENSURE BOTH THAT THE RATES ARE NOT EXCESSIVE, NOR SHOULD THE RATES BE INSUFFICIENT. WE ALSO HAVE A SERIOUS SOLVENCY OBLIGATION THAT IS STATUTORILY REQUIRED. AND SO THE INSURANCE COMMISSIONER’S OFFICE IN KIND OF INTERACTING WITH ME BASICALLY TAKES EXCEPTION TO THE IDEA THAT ITS RATE REVIEWS ARE FLAWED OR INADEQUATE IN ANY WAY. BUT WHAT ABOUT THAT SOLVENCY ISSUE, YOU KNOW, IN TERMS OF YOU DON’T WANT TO NOT ALLOW COMPANIES TO RAISE THE RATES TO THE EXTENT THAT THEY MIGHT GO OUT OF BUSINESS?

CHRIS LARSON:

YEAH. THAT’S NOT THE CASE. I MEAN, LOOK, WHAT THEY’RE SAYING IN THAT MEMO IF YOU BREAK IT DOWN IN LAYMAN’S TERMS IS THEY’RE NOT BREAKING THE LAW. SO IF THEY DID ANYTHING OUTSIDE OF THAT, THEY’D BE BREAKING THE LAW. SO THEY’RE SAYING LOOK, WE’RE DOING THE BARE MINIMUM, SO GIVE US A BREAK. BUT AGAIN, LOOK, IF THEY WERE ACTUALLY DOING WHAT THEY DO IN OTHER STATES. FOR EXAMPLE, IN MINNESOTA, WHERE THEY PUBLISH RATES AND THEY MAKE SURE THAT THE PUBLIC IS AWARE OF THEM, MAKE SURE THERE’S PUBLIC HEARINGS, THE RATES GO DOWN BECAUSE, LOOK, THE INSURANCE COMPANIES RECOGNIZE WHEN THEY BOOST RATES THAT THERE’S GOING TO BE — IF THE PUBLIC IS AWARE OF IT AND IF THERE IS A PUBLIC PUSHBACK, THEY’RE GOING TO BE LESS ENTHUSIASTIC ABOUT DOING THAT. THIS INSURANCE COMMISSIONER AND WALKER’S ADMINISTRATION, I THINK THEY FEEL LIKE THEY’RE WORKING FOR THE INSURANCE COMPANIES, NOT THE CONSUMERS. AND THIS BILL GOES TO THE POINT WHERE, LOOK, THE INSURANCE COMMISSIONER CAN DO THIS ALREADY. THIS BILL IF PASSED WILL MAKE HIM DO THAT. WE BELIEVE THAT, LOOK, WHETHER IT’S TAXES, WHETHER IT’S RATES, WHETHER IT’S OTHER MONEY THAT’S LEAVING A HOUSEHOLD, WE AS DEMOCRATS WANT TO SAVE PEOPLE MONEY AND WE’RE FINE WITH GETTING A FEW INSURANCE EXECUTIVES UPSET WITH US FOR THAT IF IT’S GOING TO SAVE PEOPLE ON HEALTH CARE.

FREDERICA FREYBERG:

WE TOOK A LOOK AT ONE REALLY LARGE RATE HIKE WHICH DATED FROM 2014. IT WAS A POLICY, 43% RATE INCREASE, BUT THE STATE DETERMINED THAT IT WAS JUSTIFIED BECAUSE THIS PARTICULAR INSURER AND ITS POLICY HAD TO COMPORT WITH THE AFFORDABLE CARE ACT AND ADD ALL KINDS OF BENEFITS- MATERNITY CARE, ET CETERA. DOESN’T IT MAKE SENSE TO CHARGE FOR INCREASED COVERAGE OR FOR INCREASED UTILIZATION?

CHRIS LARSON:

SURE, IT DOES, AND THEY CAN EXCUSE THAT. THEY CAN SAY THAT TO THE PUBLIC. BUT RIGHT NOW THERE’S NO PUBLIC HEARINGS WHERE THEY HAVE TO EXPLAIN THAT. LOOK, IF THEY DID SOMETHING AS SIMPLE AS THE WAY WE TREAT ENERGY RATES, RIGHT. WHERE IF AN ENERGY COMPANY WANTS TO RAISE ITS RATES, IT ENDS UP GOING THROUGH A PROCESS, A PUBLIC REVIEW, WHERE THEN THE PUBLIC SERVICE COMMISSION GOES OVER IT AND SAYS, YES, THESE ARE ACCEPTABLE OR NO, THEY’RE NOT. AND THEY HAVE TO JUSTIFY IT TO THE PUBLIC. WHAT HAPPENS NOW IS THEY BASICALLY SAY WE WANT TO RAISE RATES. WE’RE GOING TO DO IT AND EVERY SINGLE TIME, WHATEVER THE EXCUSE IS THAT THEY PUT OUT THERE, WHETHER IT’S JUSTIFIED, WHETHER THEY HAVE PROOF, THIS INSURANCE COMMISSIONER GREEN LIGHTS IT. AT THE END OF THE DAY WE’RE PAYING MORE. WE’RE PAYING MORE. WE’RE PAYING MORE AND NOT GETTING ANY BETTER COVERAGE. WE’RE ACTUALLY PAYING IN SOME CASES DOUBLE WHAT THEY PAY IN MINNESOTA.

FREDERICA FREYBERG:

JUST VERY QUICKLY, ANY REPUBLICANS SIGNING ON?

CHRIS LARSON:

THE COSPONSORSHIP MEMO IS OPEN FOR THE NEXT WEEK. LIKE I SAID, DEMOCRATS ARE ENTHUSIASTIC ABOUT LOWERING RATES FOR CONSUMERS. I WOULD HOPE THERE WOULD BE AT LEAST A FEW REPUBLICANS OUT THERE WHO AGREE WITH US. WE’LL SEE.

FREDERICA FREYBERG:

SENATOR CHRIS LARSON, THANKS VERY MUCH.

CHRIS LARSON:

THANK YOU.