Single Geographic Rating Study Presentation
COMMITTEE ON HEALTH CARE EXCHANGE
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10:50 AM -- Single Geographic Rating Study Presentation
Commissioner Marguerite Salazar, Division of Insurance, presented on the Single Geographic Rating Report. An informational packet was provided to the committee (Attachments N, O, P, and Q).
160802 AttachN.pdf160802 AttachO.pdf160802 AttachP.pdf160802 AttachQ.pdf
Michael Brown, Lewis and Ellis, Inc., discussed the purpose of the report. He reviewed the current factors used in rating and the current regions in Colorado. Mr. Brown discussed common cost patters by region and the total cost of care. Mr. Brown answered questions about the total cost of care data. He reviewed the cost per service for outpatient visits for various regions. Mr. Brown answered questions about the data and geographic regions.
Mr. Brown discussed the key impact scenarios for going to one rating region. He said that there are currently seven states that have a single rating region. He highlighted the impacts to consumers, carriers, and the insurance market if the state were to move to one rating region. Mr. Brown discussed the regulatory considerations for both continuing with nine rating regions and shifting to one rating region. He stated that his recommendation was to keep the current regions, but introducing a rating band, and that he does not recommend moving to one rating area.
Mr. Brown answered questions about the report and recommendations, including establishing a rating band. Commissioner Salazar responded to comments from the committee about addressing why health care costs in certain areas are higher. She discussed the establishment of a stakeholder group to study ways to control the underlying health care service costs, which was done at the direction of the Governor. She said she hopes to have the recommendations from the stakeholder group available by December 1, 2016. Commissioner Salazar responded to questions about the use of imaging in certain areas and the possibility of communicating with providers about the reasons for the high use of imagining in certain areas of the state. Mr. Brown clarified that the costs are based on the patient's address and do not reflect people who live out of state who are injured in Colorado.