The Colorado Division of Insurance has mandated that Colorado
Insurance Companies raise deductibles and out of pocket maximums by
thousands of dollars a year. The move comes with less than 30 days
notice and no approval from the Colorado legislature. Based on the
family deductible change from the $2,000 per year to $4,500 per year
this move may pose a burden to the recovering Colorado Economy.
A recent move by the Colorado Division of Insurance, in amending
Colorado Division of Insurance Regulation 4-6-5 has passed a massive
increase in the out of pocket health care costs for many small
business owners and their employees. The move, which was announced
less than 30 days before Christmas is certain to cost many small
business owners and employees thousands of dollars a year.
The state of Colorado, like many other states, has a board of
insurance that regulates matters of insurance. This board operates
with little oversight from the Colorado legislature or Governors
office. According to a contact at the Division of Insurance, the
recent changes were made to make good with the insurance companies
who were forced to accept groups of one and forced to approve most
business applicants.
The amended regulation deals with state regulated plans commonly
referred to as the Basic and the Standard PPO plans. These plans
were introduced in an effort by the state to provide better health
care options to small business owners. The plans provided for
guaranteed approval, lower deductibles and lower out of pocket
expenses.
The recent changes, which come with little notice, change all that.
For example, a single mom, employed by a small business with the
Standard PPO plan will see her family deductible change from the
$2,000 per year to $4,500 per year. That same single mom on the
basic plan would be considerably higher. If the family happens to go
to a doctor that is not a preferred provider the deductible changes
from $4000 to $9,000.
“I am absolutely amazed that in a state where a referendum that
would cost residents a few hundred dollars is all over the news, the
fact that an unelected division of government costing those who can
afford it least thousands of dollars is getting no attention.”
JNK Products, a Small Colorado Limited Liability Company, has been
trying to draw attention to the issue for over a week. According to
Krauss, JNK Products has contacted every member of the state
legislature as well as Senator Allard and Salazar. Additionally,
according to Krauss, many members of the media have been contacted
about the story as well.
“Much to my surprise, only two members of the state legislature have
commented on the issue. The governor has refused to comment and on a
national level Senator Allard’s office stated that they do not get
involved in states issues and Senator Salazar did not return calls
on the issue” States Krauss.
Senator Brandon Shafer replied to an inquiry from JNK Products
stating “I agree. This is disturbing. The regulation to which you
refer (4-6-5) was promulgated by the Department of Regulatory
Agencies Division of Insurance. They work for Gov. Owens. They
receive statutory guidance from the legislature, but the legislature
did not "change the law" directing them to make the changes they
made here.
Frankly, I don't know why these changes were made. Please give me
some time to look into this and try to figure out what's going on.”
According to Krauss the media has not brought this issue into the
light either. While Krauss brought this issue to the local and state
newspapers, and some newspapers had expressed some interest, to
date, none of the papers have run with the issue. Additionally
Krauss brought the matter to the local TV stations that have all but
ignored the information provided by Krauss. “Even the Fox News
Reporter who claims to be looking out for you has expressed no
interest in the issue.” Explained Krauss
In fact, the only ally JNK products has been able to locate comes
from what some might consider to be an unlikely source: The
insurance company. According to Michelle Snyder, Director/Marketing
Operations & Product Development for Rocky Mountain Health Plans
they did not receive notice about the change until November 21, 2005
and they were unable to send notice to their affected subscribers
until December 5, 2005 for changes that will take place on January
1, 2006.
Snyder offered to allow JNK Products to opt out of their contract
early and choose a plan better suited for their staff. Snyder worked
diligently according to Krauss to find a plan in the same price
range with similar benefits to the plan they were on before.
“We at JNK Products publicly call on the state legislature to pass a
resolution condemning the actions of the Colorado Division of
Insurance. Additionally, we ask the legislature to pass legislation
that would enact the following changes (1) The Colorado Division of
Insurance must provide 180 days notice before amending regulation
4-6-5 or any other regulation in such away that it would increase
out of pocket health care costs by more than 10%. (2) Any changes
mandating a change of greater than 10% out of pocket costs must
receive approval of the state legislature (3) Amend regulation 4-6-5
requiring insurance companies to have the same renewal and contract
dates for any plans regulated by the state of Colorado. The present
wording allows insurance companies to change benefits as of the
renewal date while not allowing small businesses to change plans
until their contract anniversary date. (4) Require notice be sent to
policy holders when rules changes are being considered and allow for
a 90 day public comment period before any changes can go into
affect” states Krauss
For more information about the issue you can contact your local
insurance agency or The Colorado Division of Insurance. Additionally
the amended regulations as well as Rocky Mountain Health Care’s
summary of the changes are attached.
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