LESIGLATIVE MEMO
PARTNERSHIP FOR NEW YORK CITY
New York, New York
March 1, 2010
Opposition to: Part D of Article VII Budget Bill AB 970/SB 6608 - Authorizes the Insurance Department to approve health insurance premium rate adjustments before they take effect
The Partnership for New York City is dedicated to working with government, labor and the not-for-profit sectors to strengthen the economy of New York City and State. Our members are CEOs of international and regional businesses that currently employ 1.3 million people throughout New York State and contribute $201 billion a year to the state GDP.
We write to express opposition to the Executive Budget proposal to reinstate “prior approval” of health insurance premium rates out of concern that this will insert another layer of bureaucracy into an already overburdened system. This proposal will add to the inefficiency of the health insurance system in New York, rather than improve it. New York abandoned the prior approval process more than a decade ago because it drained the reserves of the insurance industry, caused long delays in hospital payments, and drove health insurers into insolvency. Reinstating prior approval would revert to a practice that failed to serve the interests of health care providers or consumers.
The Executive Budget assumes that preapproval will somehow contribute to health care affordability. But intervention by state government inevitably adds to costs.
The Partnership respectfully urges you to oppose this proposal. Thank you for your consideration.