6353-S AMS QUIG S5358.1

SSB 6353 - S AMD - 178

By Senator Quigley

                             NOT ADOPTED 2/13/96 - ROLL CALL 24,24

    On page 12, beginning on line 3, strike all of subsection (3) and insert the following:

    "(3) The insurance commissioner shall establish rules to require that the rates charged for the sale of individual plans not exceed the rates charged for plans that include equivalent benefits sold in the small group market.  If no such plans exist, the insurance commissioner may establish rules to create a hypothetical equivalent based on an actuarial model.  The health care authority shall ensure that its model basic health plan is designed to permit both managed care and indemnity type benefit plans."

EFFECT:  Replaces the bill's requirement that individual insurance plans which must be marketed by all carriers be the same or better than the model BHP with the requirement that plans marketed to individuals and small groups be comparably priced.  Establishes the insurance commissioner as regulator to determine comparability of such plans.

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