Gov. John Lynch signed into law a bill that promises to dramatically change the way health insurance companies set rates for small businesses in New Hampshire. The law takes effect Jan. 1, 2006. Under it, insurers can no longer set premiums based on a business’ location or the health of its workers. It limits premium increases to no more than 20 percent a year and sets up a pool that all companies contribute to for people with high medical costs. Insurers are still permitted to consider employees’ age and the type of industry when setting rates.
Lynch said he was satisfied the new law eliminates what he considered the most damaging aspects of the old insurance law. “It takes away the ability of insurance companies to discriminate against companies and small businesses based on health and geography, so that is a real significant assistance and help to our small businesses,” he said.
Critics said the compromise would push insurers out of the state and increase premiums. But state Sen. Maggie Hassan (D-Exeter), said the insurers that would leave only created competition for the healthiest, most low-risk groups. She acknowledged young and healthy groups whose insurance rates dropped under the old law likely would see their insurance costs rise.
Supporters of the old law argued it would eventually attract more insurers and lower rates through competition but that it needed more time to take root. Many small business owners and employees complained it caused rates to shoot up for employees with poor health and in northern and seacoast counties.
Topics Carriers
Was this article valuable?
Here are more articles you may enjoy.
Trump’s Bond Insurer Tells Judge Shortfall Is ‘Inconceivable’ 
North Carolina Adjuster and Son Charged With Embezzlement in Roof Jobs 
California Sees Two More Property Insurers Withdraw From Market 
Coral Gables, Florida Tops Beverly Hills as Ritziest Home Market in US From This Issue
