Halt on health insurance rate hikes pending independent review

As a result of a recent Commerce Committee hearing and other reviews, Governor Chet Culver has called for Wellmark to justify its 18 percent health insurance rate increase to the 80,000 Iowans.

The Governor has directed the Iowa Insurance Division to temporarily halt the insurance premium increases awarded to Wellmark Blue Cross-Blue Shield until a third-party, independent review can determine if the increases are justified. The health insurance premium rate increases were scheduled to take effect on April 1.

In order to make sure Iowans are not gouged on their health insurance rates, the Governor has also instructed the Insurance Division to:

** Have an independent, qualified third-party actuary conduct a secondary review whenever a health insurance company doing business in Iowa submits a health insurance premium rate increase request.

** Seek any other practical ways to inform and educate Iowans and elected officials about the rate review processes and its relationship to Iowa’s health care costs.

** Provide an annual report on current trends in health care costs with an emphasis on how the costs of delivering health care services relate to the amounts charged by health insurance companies.