How does the Insurance Division decide whether to approve a requested rate increase?
When an insurer requests a rate increase, the division looks at many factors, including the cost of medical care and prescription drugs, the company’s past history of rate changes, the financial strength of the company, actual and projected claims, premiums, administrative costs, and profit. The division approves the request if the insurer can show that the new rate is reasonable in relation to the benefits provided. If the company’s data does not fully support the increase, the division can ask for more information, approve a lesser rate, or reject an increase. The public can view rate filings, read about why rates were approved, and comment on rate requests before a decision is made through the Insurance Division Web site: http://insurance.oregon.gov/insurer/rates_forms/health_rate_filings/health-rate-filing-search.
