Senate Proposes Legislation Requiring Health Insurance Premium Disclosure
Tuesday October 7, 2008
The Senate proposed legislation that would require employers to disclose the amount of money they spend on premiums for job-based health plans. According to the Kaiser Family Foundation, this bill would help consumers become more aware of their health spending and make more informed decisions about their coverage. If you knew exactly how much of your paycheck was going towards health insurance, would it change the plan you choose?
The Senate is accepting public comments on this bill at disclosure@finance-rep.senate.gov.
Comments
I’m not sure I understand all of the ramifications of this, but it seems to me this is a good step towards transparency when it comes to helping people make informed decisions about COBRA as well, so that when they are thinking about leaving work (or are working on family finances during a transition that would end employer-sponsored coverage for a family member), they would know what COBRA would cost them. Under federal law, COBRA monthly premiums equal the full amount the employer paid, plus any contribution you paid, plus a 2% administrative fee, if I understand it correctly.
If it’s true that this measure would mean transparency and helping consumers make informed decisions about their health insurance choices when leaving a job, getting a divorce, or having a child age out of employer-sponsored coverage, then I think it’s an asset to have such reporting, just for that.