Denver (AP) A house committee has approved a bill that would require health insurance firms to get prior approval for rate hikes, punish them for improper denial of claims, and encourage efficiencies -- despite industry claims that it will drive up costs.
The house businessaffairs and labor committee gave its ok to the fair and accountable insurance act on Thursday.
Aurora Democratic Representative Morgan Carroll says insurance companies currently are allowed to increase rates at-will, then get approval from the state division of insurance later.
She says the companies are rarely punished if the increases are determined to be unjustified.
The measure now goes to the House Appropriations Committee.