Washington state lawmakers and regulators should think about what they are doing before acting to reduce surpluses at the state’s health insurers.
Consultants at the Lewin Group, Falls Church, Va., have issued that warning in a report on Washington state health insurance surplus accumulation.
The consultants prepared the report for Washington insurance regulators.
Washington state already has addressed surplus accumulation concerns by adopting a law that increases health carrier financial reporting requirements, and regulators have proposed a bill that would permit regulators to consider carriers’ surplus levels when regulating health coverage rates, according to officials in the Washington insurance commissioner’s office.
Washington also could cap health carriers’ surplus levels, and it could include a “community benefit” requirement in the charters of non-profit health carriers.