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FOR IMMEDIATE RELEASE |
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State
Rep. John Yudichak |
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Yudichak bill would represent interests of health insurance consumers
HARRISBURG, Jan. 29 – State Rep. John Yudichak, D-Luzerne, today held a news conference on his legislation that would establish an Office of Consumer Advocate for Health Insurance in Pennsylvania to help protect the rights of consumers in health insurance-related matters.
Joining Yudichak at the event were Rep. Ken Smith, D-Lackawanna, other legislators, Desiree Hung, associate state director of advocacy for AARP, Bill George, president of the Pennsylvania AFL-CIO, James Browning, director of the Pa. Public Interest Research Group, and Wayne Oplinger, owner of CPS Direct Marketing in Nanticoke.
House Bill 1121 would establish the office as an independent organization within the Office of Attorney General. The Office of Consumer Advocate for Health Insurance would have the authority to represent consumers’ interests on any health insurance matter before the state Department of Insurance or any other state agency or court. The advocate also would be responsible for identifying and tracking trends in the health insurance industry, recommending consumer protections, responding to consumer complaints and educating state residents about health insurance issues and practices.
“The health-care system is broken and the issues surrounding health-care insurance are complex,” Yudichak said. “The special-interest groups fighting for the status quo are well-financed and well-represented. I believe it is time to empower Pennsylvania consumers and give them a strong voice in the health-care debate.”
“Consumers deserve an independent resource for advocacy, information and protection related to increasingly complex insurance products, including long-term care insurance. We believe an independent consumer advocate office could aggressively monitor long-term care insurance providers and take appropriate action to inform and protect consumers,” Hung said.
“A consumer advocate in health care would be great for Pennsylvania,” George said. The current state secretary of Insurance is doing a wonderful job, and this would be an excellent addition in helping the secretary to continue protecting premium payers in PA.”
The office would be similar to the one that exists within the Public Utility Commission, which has been regarded as effective in representing state residents’ concerns in matters involving public utilities in Pennsylvania. Pennsylvania has created an Office of Consumer Advocate within the Insurance Department, but unlike the PUC consumer advocate, the Insurance Department’s consumer advocate does not have the authority or the budget to challenge or litigate insurance company rate increases on behalf of consumers.
“As a current small-business owner, I understand the challenge of trying to be competitive while continually facing rising costs for employee health-care coverage at the whim of insurance providers,” Smith said. “An advocate for insurance would help ensure that insurance companies would have to receive permission first before increasing their premiums.”
“Creating an independent advocate will do for health insurance what our state’s independent advocate for utility consumers has already done -- save millions and reduce costs for families and businesses,” Browning said.
The bill is currently under consideration in the House Insurance Committee.
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CONTACT: Victoria L.
Stanish
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