JANUARY 29, 2016

Fighting to Lower Health Insurance Costs

Dear Friends, Neighbors, and fellow Fairbanksans:

I was working on this week’s enewsletter about my bill to lower health insurance costs by reforming the rate review process, and then news broke yesterday afternoon that makes this bill even more important.  Yesterday, the Division of Insurance announced it was cancelling Moda Health’s ability to sell or renew health insurance plans in Alaska.  This leaves Premera Blue Cross Blue Shield as the only company selling individual health insurance, and now that one provider has a monopoly it is more important than ever that we a strong rate review process to protect Alaskans from unfair prices.

Fairbanksans June Rogers, Jess Peña, and Jaclyn Sallee (L-R) came by the office this week.  June just received the prestigious Governor’s Award for the Arts Lifetime Achievement Award.  Jess is the new executive director of the Fairbanks Arts Association, and Jaclyn is the president and CEO of Koahnic Broadcast Corporation, which produces many great programs for public radio, including National Native News. 

What You Need to Know if You Have a Moda Plan

If you have a Moda Health plan it is still valid and you can still use it and submit claims.  When your plan expires you will not be able to renew it, because the Division of Insurance is not satisfied that Moda has the financial ability to honor future policies I will be monitoring this situation closely to make sure that Alaskans continued to receive the coverage they paid for.  Here’s the link to the division’s factsheet on the Moda situation.

Talking to reporter Dorene Lorenz about my bill to reform health insurance rate review.  You can read her story here.

Alaska’s Insurance Rate Review Needs Reform to Protect Consumers

The Division of Insurance reviews proposed insurance rates to make sure they are fair and not excessive.  They have the authority to hold hearings on any proposed rate change, but in recent years they have simply rubber stamped health insurance rate hikes without even holding a hearing.  In 2015 Alaskan insurance rates rose 31%, while nationwide health insurance rates stayed flat.  For 2016 the division approved another 39% rate increase.

My bill, House Bill 239, would require the Division of Insurance to hold investigatory hearings any time an insurance company asks to raise their rates by 10% or more.  It would also require that information about proposed rate increases be made available online, so that you don’t have to learn about a rate increase in the news after it has already been approved.  Studies show that state rate review procedures save Americans over $1 billion per year- it’s time Alaskans start getting these savings too.

As always, please call or email me with your thoughts, ideas, and concerns.

Sincerely,

Representative Adam Wool