SB 1037: Health care coverage: rate review.

The bill aims to amend health and insurance laws to improve rate review and affordability. It would redefine "unreasonable rate increase" to mean a rate hike determined by the director of the department of managed health care or the insurance commissioner as excessive, unjustified, unfairly discriminatory, or unreasonable. The bill would require health plans and insurers to demonstrate the impact of health care cost targets on rate development, including medical trends, inflation, and administrative costs. Plans and insurers must reconcile their cost drivers with analysis published by the office of health care affordability. The director and commissioner would consider the impact of health care cost targets and excessive tangible net equity when determining rate reasonableness. Enhanced rate reviews would be conducted to determine if premiums are affordable for individual and group purc…