Tuesday, July 11, 2006

R.I. Lowers Health Insurance Premiums

Rhode Island Gov. Donald Carcieri (D) on Thursday signed into law a broad package of health care-related bills that includes legislation to lower health insurance premiums for small-business owners and their employees, the Providence Journal reports. The insurance premium legislation will create a new commission to develop a health insurance plan that will be exempt from state coverage mandates governing other Rhode Island plans

Lowering premiums by reducing state mandates which means fewer claims will be paid under the plan. At least they understand the only way to legitimately lower the cost of health insurance.

Of course this does nothing to lower the cost of health CARE.

Another piece of the legislative package creates a reinsurance fund that would subsidize health insurance premiums for firms whose average pay is below a certain amount.

Sounds great. How will they pull this rabbit out?

This subsidy is dependent upon creation of a financing source, which lawmakers have yet to address.

Not surprising . . .
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