NOTE:  This bill has been prepared for the signature of the appropriate legislative
officers and the Governor.  To determine whether the Governor has signed the bill
or taken other action on it, please consult the legislative status sheet, the legislative
      history, or the Session Laws.
      
      
      HOUSE BILL 10-1008
      
      
      BY REPRESENTATIVE(S) Schafer S. and McCann, Apuan, Frangas,
      Massey, Casso, Court, Curry, Ferrandino, Fischer, Hullinghorst, Kagan,
      Kefalas, Labuda, Merrifield, Middleton, Pace, Peniston, Primavera, Ryden,
      Scanlan, Solano, Soper, Todd, Tyler, Vigil, Carroll T., Miklosi, Pommer;
      also SENATOR(S) Carroll M. and Schwartz, Boyd, Foster, Bacon, Gibbs,
      Heath, Hodge, Hudak, Johnston, Keller, Morse, Newell, Sandoval,
      Shaffer B., Steadman, Tochtrop, Whitehead, Williams.
      
      
      Concerning a prohibition against consideration of gender in
           setting rates for individual health insurance policies.
       
      
      Be it enacted by the General Assembly of the State of Colorado:
      
           SECTION 1.  10-16-107 (1.5), Colorado Revised Statutes, is
      amended to read:
      
           10-16-107.  Rate regulation - rules - approval of policy forms -
      benefit certificates - evidences of coverage - benefits ratio - disclosures
      on treatment of intractable pain.  (1.5) (a)  Rates for an individual
      sickness, accident, or health insurance policy, contract, certificate, or other
      evidence of coverage health coverage plan issued or delivered to any
      policyholder, enrollee, subscriber, or member in Colorado by an insurer
      subject to the provisions of part 2 of this article or an entity subject to the
      provisions of part 3 or 4 of this article shall not be excessive, inadequate,
      or unfairly discriminatory to assure compliance with the requirements of
      this section that rates are not excessive in relation to benefits.  Rates are
      excessive if they are likely to produce a long run profit that is unreasonably
      high for the insurance provided or if expenses are unreasonably high in
      relation to services rendered.  In determining if rates are excessive, the
      commissioner may consider the expected filed rates in relation to the actual
      rates charged.  Concerning inadequacy, rates are not inadequate unless
      clearly insufficient to sustain projected losses and expenses, or the use of
      such rates, if continued, will tend to create a monopoly in the market. 
      Concerning unfair discrimination, unfair discrimination exists if, after
      allowing for practical limitations, price differentials fail to reflect equitably
      the differences in expected losses and expenses.
      
           (b)  Notwithstanding any other provision of this article, an
      insurer subject to part 2 of this article or an entity subject to
      part 3 or 4 of this article shall not vary the premium rate for an
      individual health coverage plan due to the gender of the
      individual policyholder, enrollee, subscriber, or member.  Any
      premium rate based on the gender of the individual policyholder,
      enrollee, subscriber, or member shall be considered unfairly
      discriminatory and shall not be allowed.
      
           SECTION 2.  Act subject to petition - specified effective date -
      applicability.  (1)  This act shall take effect January 1, 2011; except that,
      if a referendum petition is filed pursuant to section 1 (3) of article V of the
      state constitution against this act or an item, section, or part of this act
      within the ninety-day period after final adjournment of the general
      assembly, then the act, item, section, or part shall not take effect unless
      approved by the people at the general election to be held in November 2010
      and shall take effect on January 1, 2011, or on the date of the official
      declaration of the vote thereon by the governor, whichever is later.
      
           (2)  The provisions of this act shall apply to rates for individual
      health coverage plans that are issued or renewed on or after the applicable
      effective date of this act.
      
      
      
      
      ________________________________________________________
      Terrance D. Carroll                Brandon C. Shaffer
      SPEAKER OF THE HOUSE                     PRESIDENT OF
      OF REPRESENTATIVES                         THE SENATE
      
      
      
      
      
      
      ____________________________  ____________________________
      Marilyn Eddins                          Karen Goldman
      CHIEF CLERK OF THE HOUSE                 SECRETARY OF
      OF REPRESENTATIVES                         THE SENATE
      
      
      
      
                  APPROVED________________________________________
      
      
      
      
      
                                    _________________________________________
                                    Bill Ritter, Jr.
                                    GOVERNOR OF THE STATE OF COLORADO