Right now in Colorado, home, car insurance and health insurance companies decide their own insurance rates with some oversight, by the state.
Rep. Carroll's bill would take the power for setting rates from the insurance companies and give most of it to the state insurance commissioner.
Supporters of the bill call it an important step toward reforming Colorado's health care system, saying it will make health insurance more affordable and accessible for businesses with 50 or fewer employees. Critics argued the bill would undermine efforts to stabilize rates that are encouraging major insurers to re-enter the small-company market.
Under a law passed in 2003, health insurance companies can offer discounts of up to 25 percent for healthy groups but can charge less healthy groups up to 10 percent more.
Small business health insurance
House Bill 1355
• What it does: Prohibits health insurers from using health status and claims history in determining rates for small businesses.
• Supporters say: It prevents insurance companies from penalizing small businesses if employees or their families have been sick.
• Opponents say: Since rating flexibility was implemented, rates have stabilized and more health insurers are doing business in the state. This bill would reverse that.
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