Pennsylvania’s nine largest health insurers are being investigated for increasing rates before federal health system reform takes full effect, according to an article from the Associated Press.
Gov. Ed Rendell told the Philadelphia Inquirer that the rate increases—as much as 50 percent for some small businesses—are “about companies' trying to get the highest possible rates before the federal reforms take effect.”
Last week, the state Department of Insurance asked the insurers for more information on medical underwriting for small group and individual business customers.
Medical underwriting uses a person’s health history to decide whether to insure them and how much to charge them. Under the new health system reform law, medical underwriting will no longer be allowed beginning in 2014.
In the Associated Press article, state Insurance Commissioner Joel Ario is quoted as saying that some insurers have expanded use of individualized medical questionnaires and drug profiling for small groups, and there have been attempts to "identify and drive up premiums."
Sam Marshall, president of the Insurance Federation of Pennsylvania, told the Philadelphia Inquirer that the four insurers the federation represents are not trying to drive up premiums and are working toward 2014 when medical underwriting will no longer be allowed.
The investigation of the insurers began in February 2010.
The Insurance Department also is seeking a $1 million federal grant to help it monitor insurance premiums and rate increases in the state.