Testimony for House Bill 2723: Improving Consumer Notices of Health Insurance Rate Increases
Stacey Pogue /(512) 320-0222 x 117
May 9, 2011
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House Bill (HB) 2723 by Representative Walle ensures that people who buy health insurance in the individual market (directly from an insurer, not through an employer) will be sent notices of premium increase at least 60 days in advance. This mirrors the notice timeline for job-based health insurance, giving families sufficient time to either shop around for more affordable coverage, or adjust their budgets to be able to absorb the increase.
HB 2723 also ensures that notices of rate increases sent to individuals and small employers contain basic information including the effective date, percentage increase, and information on existing resources where consumers can get assistance, learn about coverage options, or learn more about their rate increase. CPPP supports HB 2723. With good information and adequate time shop around for the best deal, individuals and small employers will be better educated insurance shoppers, a necessary component of a competitive market.