Plain English Breakdown
The official source material did not provide specific details on the consequences of disapproving a rate increase, nor does it specify the impact on insurance companies' profits and policyholders' costs.
Insurance Rate Review
This bill requires Indiana's insurance commissioner to review whether products are affordable before approving or disapproving rate changes for accident and sickness insurance and health maintenance organization contracts.
What This Bill Does
- Requires the insurance commissioner to consider if products are affordable before approving or disapproving a rate increase or decrease.
- Allows the commissioner to reject a rate increase if it exceeds the Consumer Price Index for All Urban Consumers: All Items Less Food and Energy plus 1%.
Who It Names or Affects
- Insurance companies that offer accident and sickness insurance or health maintenance organization contracts in Indiana.
- People of Indiana who buy these types of insurance policies.
Terms To Know
- Consumer Price Index for All Urban Consumers: All Items Less Food and Energy
- A measure that tracks the average change over time in the prices paid by urban consumers for a market basket of consumer goods and services, excluding food and energy.
Limits and Unknowns
- The bill does not specify what happens if a rate increase is disapproved.
- It's unclear how this will affect insurance companies' profits or policyholders' costs in the long term.