New Hampshire House Passes Bills Creating High Risk Pool, Other Insurance Reforms
The New Hampshire House on June 7 passed a bill (SB 118) that would create a separate insurance pool for "high risk" individuals with conditions such as heart disease or cancer, AP/Foster's Daily Democrat reports. The measure would cap premiums for individuals in the pool at 150% of "standard" rates. The bill also would allow insurers to modify rates based on factors such as age, tobacco use and "health status," a move supporters say will attract more insurers to the state. According to the AP/Daily Democrat, insurance carriers "fled" New Hampshire in 1994 after the state Legislature passed a law that guaranteed access to health insurance for all state residents. In addition, advocates of the bill hope that the measure will bring down "skyrocketing" premiums, thus allowing "younger, healthier" people to purchase coverage and bring down the cost even further. The pool initially would be funded through a 60-cent tax on all residents covered by life insurance (Ayotte, AP/Foster's Daily Democrat, 6/8). The state Senate passed SB 118 last month (Legislature Web site, 6/12). The two sides will now likely seek a compromise.
Small Group Regulations
The state House also passed a "gutted" version of a state Senate bill (SB 119) that would have changed the eligibility requirements for businesses to receive small group health coverage. The state House version would retain the state's current eligibility, which allows businesses with 100 of fewer employees to qualify for the coverage. The state Senate version would have limited eligibility to firms with 50 or fewer employees. The state House version would also:
- Prohibit insurers from setting small group rates based on employees' health status;
- Establish two open enrollment periods for "small employers who are self-employed." Current law allows year-round enrollment; and
- Eliminate age-band rating for individuals under 19 years old. The current age-band system limits premium increases; for example, a 60-year-old may not be charged more then three times the premium for a 20-year-old (AP/Foster's Daily Democrat, 6/12).
