Colorado Legislative Council Staff
NO FISCAL IMPACT
January 27, 1998
House Business Affairs
Will Meyer (866-4976)
TITLE: CONCERNING THE USE OF COMMUNITY RATING CRITERIA IN SMALL GROUP HEALTH INSURANCE PLANS.
Summary of Assessment
The provisions of this bill would allow the premium rate adjustment factor used by small group sickness and accident insurers for health plans, issued or renewed on or after July 1, 1998, to be based on claims experience and health status. The bill would become effective upon signature of the Governor.
This bill would leave in statute the provision that the rate adjustment factor is a multiplier that must be applied. However, effective January 1, 1998, under legislation enacted in 1994, the rate adjustment factors have not been allowed in setting small group rates. Therefore, it is believed that the provisions of this bill would not result in an increase in the number of filings submitted to the Division of Insurance, Department of Regulatory Agencies. The bill would not affect any other agency of the state, or unit of local government. Therefore, this bill is assessed as having no fiscal impact.