This bill requires that rates for health insurance policies and plans be filed before the rate is applied and requires approval by the commissioner of insurance of any rate that increases 10 percent or more. Currently, insurers must file premium rates, and changes to premium rates, for all types of insurance with the Office of the Commissioner of Insurance within 30 days after the rates or rate changes become effective. Current law prohibits premium rates from being excessive, inadequate, or unfairly discriminatory and provides guidelines for determining whether rates comply with those standards. The commissioner of insurance may order that a rate be discontinued for any policy issued or renewed after a date specified in the order if, after a hearing, the commissioner determines that the rate does not comply with those standards.

The bill requires that an insurer that writes health insurance must file with OCI premium rates, and changes to premium rates, for health insurance before those rates or changes to rates become effective. If a proposed rate is an increase of 10 percent or more, an insurer may not use the rate unless approved by the commissioner. For any other rates or rate changes, unless the commissioner holds a hearing on a rate or change to a rate, the rate or changed rate is approved if the commissioner does not disapprove the rate within 30 days after it was filed with OCI.