Senate passes Delvin bill to stop health insurance scammers

March 9, 2009

OLYMPIA…

OLYMPIA…Sen. Jerome Delvin, R-Richland, won Senate approval today for his consumer protection measure that would allow the Office of the Insurance Commissioner to regulate discount health plans. 

“Many of these plans sell what they call ‘discount health insurance coverage’ to unsuspecting consumers,” Delvin said. “Consumers think they’re getting low-cost health insurance only to learn that either their provider doesn’t accept it or that the services they need are not covered.

What they’re actually getting are discount rates from only a few providers.”  

Senate Bill 5480 would require these discount health plans, typically offered on TV, radio and the Internet, to be licensed by Washington’s insurance commissioner. These companies would have to submit an annual financial statement, a list of providers, and details of exactly how their plans work. Each plan would also be required to cite the number of members it serves and how it handles complaints.  

“The insurance commissioner has received more than 400 consumer complaints on discount health plans,” Delvin said. “Senate Bill 5480 would require these firms to produce marketing materials that clearly state what they’re offering and where consumers can use the services. They must also provide a toll-free number, a Web site and an updated list of providers who accept their plan. These people are getting scammed and it’s time we force these companies to market their services honestly.” 

SB 5480 will move to the House of Representatives. If passed, the bill would become law this summer.

- 30 -

Sen. Delvin represents the 8th Legislative District, which includes
Richland, Kennewick, Benton City, and Prosser.

Additional contact: Pat Albright at (360) 786-7519 or albright.pat@leg.wa.gov