From the Palatine Tea Party…
(Palatine, Illinois) – In response to the letter Melissa Bean wrote to the constituents in district 8 dated April 16, 2010. We will respond to each of her statements Melissa Bean made based on emotion with factual responses where she stated the following:
“With this legislation, insurance companies will be banned from dropping coverage or increasing rates arbitrarily after a claim from an employee. Premium increases will be more predictable as they will need to be justified bases on paid claims.”
This is another categorically UNTRUE statement. We have already addressed the FACT that it is illegal in all 50 States to “drop coverage after a claim” without evidence of fraud. That being said, it is also untrue that an insurance company can just “arbitrarily increase rates after a claim.” In fact, NOTHING could be FURTHER from the truth. The LAW in Illinois (and in most States) is very clear when it comes to raising health insurance premiums. Health Insurance premium increases MUST BE FILED WITH THE STATE DEPARTMENT OF INSURANCE. When an increase in premiums is necessary due to the assessment of a trained actuary, an insurance company must FILE said rate increase with the State Department of Insurance BEFORE any such rate increase is passed on to policy holders. Small Group Health Insurance rate increases must also be reviewed by an Actuary at the State Department of Insurance prior to passage. These rate increases can not be just “raised arbitrarily”.