CITIZEN ACTION OF NEW YORK
Local Health Care Activists, Small Business Owners Thank Senator Breslin and State Leaders for New Consumer Protection Law
Passage of “Prior Approval” Will Help Control Skyrocketing Insurance Rates
Albany, NY – Local residents, small business owners, and health care advocacy organizations today joined State Senator Neil Breslin, chair of the Senate Insurance Committee, to announce the passage of a new consumer protection law that gives the State Insurance Department the authority to reject or modify insurance premium rate increases if the increase is unreasonable, excessive, or unfairly discriminatory
In the late 1990s, as part of a push toward deregulation during the Pataki Administration, this system of regulation, known as “prior approval,” was phased out. Because of this, over the past decade health insurance premiums have risen 81%, while real wages only increased by 11%.
“Earlier this year, Congress and the President passed historic health care reform that has already helped thousands of people in America gain greater access to coverage. Thanks to Senator Breslin and New York State government, New Yorkers will now have even further protections to block insurance companies from taking advantage of health care consumers,” said Chris Scoville, Capital District Organizer for Citizen Action of New York. “Senator Breslin’s leadership on this legislation that will help families and small businesses across New York shows that he is squarely on the side of New Yorkers.”
“For too long New York families and small businesses have been faced with the nightmare of choosing between out-of-control premiums or forgoing health insurance. By restoring prior approval, we are bringing smart and responsible regulation to the health insurance industry,” Senator Neil D. Breslin (D-Delmar), Chair of the Insurance Committee and sponsor of the bill said. “The cost of health insurance for New Yorkers has increased at unprecedented levels in recent years. Health insurance premiums rose 81% between 2000-2007, while real wages only increased by 11% in that same time period, meaning that families and businesses across the state are spending more and more of their household budgets on health insurance. This bill restores oversight powers to the State Insurance Department and requires prior approval for any insurance company that wants to raise premiums. I thank Citizen Action for all of their support on this vital legislation.”
Small businesses and nonprofit organizations, Individuals and families who buy coverage on their own, and seniors and people with disabilities who buy Medigap policies will all see a direct benefit from the passage of this legislation.
Insurers in New York will also now have higher requirements of how much of their premium income they must spend on paying claims. 82 cents of every dollar they collect must now go toward paying for care, a level even higher than what the federal government will soon require under the new health care law.
“We applaud the Legislature and the Governor for taking this important step in re-regulating health insurance premium increases. Consumers have been facing out-of-control premium hikes, despite slow wage growth and other household budget pressures. Prior approval will allow the State to keep premium increases in check until federal health reform is fully implemented,” said Carrie Tracy of Health Care for All New York.
“For too long, too many New Yorkers have been priced out of the health insurance market by rates that continued to rise as wages remained static, making access to cancer screenings and treatment out of reach for many families,” said Sherry Tomasky, Regional Advocacy Director, American Cancer Society of NY & NJ. “Granting the state insurance department oversight of rate increases guards consumers against excessive rate hikes and helps to ensure that any hikes are in line with the actual cost of care. Thank you to Senator Breslin for his leadership and commitment to this issue. Along with our coalition partners in Health Care For All New York (HCFANY), the American Cancer Society is proud to have advocated for this issue on behalf of cancer survivors in the Capital District and across New York.”
“Paying for health care is one of the biggest barriers to success I face as a small business owner,” said Elena Giglio, owner of Elena’s Italian Cafe in Albany. “We work hard every day to make ends meet, and it’s not fair that health insurance companies take advantage of hard working New Yorkers. Thanks to this new law, small businesses will be protected from skyrocketing health insurance rates.”
“As a resident of Albany, I’d like to thank my Senator, Senator Breslin, for ensuring that this critical consumer protection bill was passed and signed into law,” said Beverly Padgett. “I’ve been uninsured and have suffered because I wasn’t able to afford health coverage. I don’t want anyone else to have to go through what I did. Because of this new law, more people will be able to afford health coverage and stay healthy.”
For more information on Citizen Action of New York, visit https://citizenactionny.org. For more information on Health Care for All New York, visit http://hcfany.org.
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