Insurance rates targeted

Alan Gathright, Rocky Mountain News

Published April 12, 2007 at midnight

Text size

More Colorado Government

Insurance companies will be prevented from raising rates on small employers when their workers have existing health conditions or have filed prior claims under a House bill given initial approval Wednesday.

Supporters call it a crucial step toward reforming the Colorado health-care system, saying it would eliminate discriminatory practices that drive employers to hire only the young and healthy in hopes of keeping rates affordable.

"This legislation is the first and most important step in meaningful health care reform," said sponsor Rep. Anne McGihon, D-Denver. "Without judging employees by their health history, we hope to ensure more equal access to quality, affordable health care plans for all working families."

She and others said House Bill 1355 would achieve that aim by blocking insurance companies from raising rates on small businesses if employees or their families have had accidents, prior claims or chronic health conditions.

The bill won tentative passage on a 40-to-23 vote; five Republicans crossed over to vote for it and three Democrats voted against it. The final vote is expected today.

The opposition, led by Republicans, argued that the bill would undermine efforts to stabilize rates that are encouraging major insurers to re-enter the small-company market. "We're changing the rules in the middle of the ballgame when it's now starting to work," said Rep. Larry Liston, R-Colorado Springs.

Subscribe to the Rocky Mountain News