SENATE BILL REPORT

SB 5398

This analysis was prepared by non-partisan legislative staff for the use of legislative members in their deliberations. This analysis is not a part of the legislation nor does it constitute a statement of legislative intent.

Title: An act relating to the insurance commissioner's authority to review and disapprove rates for certain insurance products.

Brief Description: Concerning the insurance commissioner's authority to review and disapprove rates for certain insurance products.

Sponsors: Senators Keiser and Kline; by request of Insurance Commissioner.

Background: The Office of Insurance Commissioner (OIC) has the authority to regulate insurance companies offering health insurance products in Washington State. The OIC has authority to review insurance rates for the individual and small group products, and may disapprove rates if they are unreasonable in relation to the benefits offered. Legislation passed in 2008 providing the OIC with the authority to review and disapprove rate filings for the individual health plans included a sunset and expires on January 1, 2012.

Summary of Bill: The expiration date on the OIC's authority to review and disapprove individual market rates is repealed.

Effective Date: Ninety days after adjournment of session in which bill is passed.

Staff Summary of Public Testimony: PRO: This is a simple bill to continue the authority to review individual market rate filings. Without continuing authority to review, it will default to the federal government and it makes more sense to retain it in state.