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2006 SESSION

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060888436
HOUSE BILL NO. 1324 Offered January 11, 2006 Prefiled January 11, 2006 A BILL directing the Commissioner of Insurance to develop a plan to increase health insurance competition. ----------
Patrons-- Nutter, Athey, Bell, Byron, Callahan, Crockett-Stark, Dudley, Gear, Gilbert, Landes, Wittman and Wright
---------- Referred to Committee on Commerce and Labor ----------

Whereas, the market for health insurance products in rural areas of the Commonwealth often lacks effective competition; and

Whereas, increasing the level of competition among providers of health insurance would offer the benefits of greater choice and lower costs for the citizens of the Commonwealth; now, therefore,

Be it enacted by the General Assembly of Virginia:

1.  § 1. That the Commissioner of Insurance shall prepare a plan to double the level of competition among providers of health insurance products in rural areas of the Commonwealth. The plan shall address (i) the current level of competition among providers of health insurance products in such areas; (ii) barriers to increased competition among such providers; (iii) the likely effects of increased competition; (iv) an analysis of potential solutions, including creating incentives for new health insurance providers, including health maintenance organizations, to compete with incumbent providers offering health insurance products in such areas; and (v) ways to overcome institutional, legal, and economic barriers to an increase in such competition, regardless of whether such barriers are unique to the Commonwealth's rural areas. The Commissioner shall submit the plan to the Governor and the chairmen of the House Committee on Commerce and Labor and the Senate Committee on Commerce and Labor by July 1, 2008.