HEALTH INSURERS:  ESTIMATE IMPACT OF

AFFORDABLE CARE ACT ON PREMIUM INCREASES

House Bill 4816

Sponsor:  Rep. Mike Shirkey

Committee:  Insurance

Complete to 10-30-13

A SUMMARY OF HOUSE BILL 4816 AS INTRODUCED 6-11-13

The bill would amend the Insurance Code to require a commercial health insurer or a health maintenance organization (HMO) to provide a written estimate as to the amount of any premium increases attributable to the federal Patient Protection and Affordable Care Act.

The impact on higher premiums could be expressed in an amount or in a percentage.  Further, the insurer or HMO would have to include the following statement with the estimate:

These increases are due to the federal Patient Protection And Affordable Care Act and not the enactment of any laws, rules, or regulations of the Michigan governor, the Michigan legislature, or the Department of Insurance and Financial Services.

The bill contains two enacting sections.  The first says the bill does not authorize and should not be construed to authorize the establishment or operation of an American health benefit exchange for the state under the federal law.  The second says the bill applies to policies, certificates, and contracts delivered, issued, or renewed in the state on or after the bill's effective date.

FISCAL IMPACT:

The bill would have no significant fiscal impact on the Department of Insurance and Financial Services (DIFS).

                                                                                           Legislative Analyst:   Chris Couch

                                                                                                  Fiscal Analyst:   Paul Holland

■ This analysis was prepared by nonpartisan House staff for use by House members in their deliberations, and does not constitute an official statement of legislative intent.