SB 2008 Summary

• Establishes the Health Care Treatment Advisory Panel, a 15-member board assigned to the Department of Commerce and Consumer Affairs to review health insurance rate filings for accident and health or sickness insurance.

• Panel members include physicians from various specialties (general medicine, obstetrics/gynecology, pediatrics, geriatrics, surgery), nurses, therapists, naturopathic physicians, chiropractors, and public representatives appointed by the Senate President, House Speaker, and DCCA Director.

• Panel reviews rate filings to determine whether proposed rates adequately provide for effective treatment of injuries and illnesses according to reasonable standards of care and generally accepted medical practices, and may disapprove inadequate filings.

• Prohibits insurance entities from reducing reimbursement rates solely to increase profit margins, and requires the Commissioner to review rate reductions to ensure they are based on demonstrable cost decreases or correction of historical overpayments.

• Creates a 5-year pilot program (July 1, 2010 through December 31, 2015) with automatic sunset, though provisions regarding rate reduction review remain permanent; appropriates funds from the compliance resolution fund for panel operations.