04-R 367

2004 -- S 3100 AS AMENDED

Enacted 06/24/04

J O I N T R E S O L U T I O N

RESPECTFULLY REQUESTING THE DEPARTMENT OF BUSINESS REGULATION TO CONDUCT A COMPREHENSIVE STUDY OF HEALTH INSURANCE MARKET REFORM - THE RHODE ISLAND HEALTH CARE REFORM ACT OF 2004: EVALUATION OF INSURANCE REFORMS

Introduced By: Senators Perry, Sheehan, Cote, Felag, and Blais

Date Introduced: May 11, 2004

     WHEREAS, The percentage of persons without health insurance in Rhode Island has

been rapidly growing over the past 3 years; and

     WHEREAS, The cost of health insurance is the main reason that individuals become

uninsured; and

     WHEREAS, Employer-sponsored insurance is an effective means to promote health care

coverage; and

     WHEREAS, As health insurance premiums have risen at double-digit rates for the fourth

consecutive year, employers are having an increasingly difficult time subsidizing health insurance

for their employees; and

     WHEREAS, The share of health care costs being shifted to employees has increased,

causing some to discontinue coverage; and

     WHEREAS, Premiums are often unaffordable for individuals who are young retirees or

otherwise ineligible to purchase insurance through a group; and

     WHEREAS, Rhode Island is one of a group of states with relatively small populations

where one insurer dominates the market; only one insurer offers nongroup policies; and insurers

have left due to profitability issues; now, therefore be it

     RESOLVED, That the General Assembly requests that the Department of Business

Regulation conduct a comprehensive evaluative study of the results and applicability of the

following insurance market reforms and subsidies:

     (1) Reforms enacted in the state of New Hampshire in 2002 and 2003 to increase insurer

competition;

     (2) A high-risk pool for individuals with significant health expenditures;

     (3) A purchasing alliance for the smallest of businesses that have experienced the most

severe premium increases; and

     (4) Regional insurance regulation through the coordination of Rhode Island’s health

insurance laws and oversight with that of Massachusetts;

     and be it further

     RESOLVED, That said study shall be completed on or before March 1, 2005 and the

Department of Business Regulation shall report back to the Joint Legislative Committee on

Health Care Oversight; and be it further

     RESOLVED, That the Secretary of State be and he hereby is authorized and directed to

transmit a duly certified copy of this resolution to the Department of Business Regulation.

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LC03370

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