Bill Banning Insurance Company Bonuses for Denial of Claims Advances

A measure that would prohibit insurance companies from paying employees bonuses when they deny claims has been approved by the Senate.

SB 103 also makes illegal the practice of paying bonuses to employees when they cancel insurance policies.

"Colorado consumers are one step closer to getting the quality medical care they’re already insurance companies paying for," bill sponsor Sen. Morgan Carroll, D-Aurora, said. "To tie the denial of insurance coverage to monetary bonuses is not only unethical but unscrupulous. Insurance companies should not be in the practice of lining the pockets of those who deny medical services to their customers."

The bill provides that juries, in lawsuits contesting an insurer's refusal to pay a claim, may consider payment of bonuses for denial of claims or cancellation of policies as evidence of bad faith behavior by the insurer.

Technically, SB 103 defines insurers payment of bonuses in those circumstances as an unfair claim settlement practice.

The bill, which passed on third reading by a 22-11 vote, now moves to the House.

Sen. Al White, R-Hayden, joined all of the chamber's Democrats in support of the measure. Senate minority leader Josh Penry, R-Fruita, and Sen. Shawn Mitchell, R-Broomfield, did not vote.

Bill Mandating Benefits for Domestic Partners Gets Committee OK

A controversial bill that would require the state to provide the same employee benefits for same-sex couples as it does for married employees advanced to the House floor Monday.

HB 1260, while not establishing domestic partnerships or requiring the state to recognize same-sex civil unions, has nevertheless drawn fire from Republicans who insist that it contradicts voters' rejection of Referendum I in 2006.

According to an article in this morning's Denver Post, the GOP's Bob Gardner, of Colorado Springs, insisted during a hearing on the bill that it creates "de facto civil unions."

But sponsoring Rep. Mark Ferrandino, D-Denver, said the bill's impact is not limited to gay couples.

The Post report quoted Ferrandino as saying that HB 1260 is aimed at "making sure people can take care of each other."

He was supported in that view by Rep. Ellen Roberts, R-Durango, who voted with the majority Democrats on the House Judiciary Committee to advance the measure to the House Committee of the Whole.

The U.S. Bureau of the Census estimated in 2007 that there are more than 750,000 same sex couples in the country.

According to the National Conference of State Legislatures 14 states mandate that public employee benefit programs recognize domestic partnerships.

Rocky Article Says Majority Dems Will Push Insurance Reforms

An article in today's Rocky Mountain News says that the General Assembly's majority Democrats will push a series of bills aimed at reforming insurance industry practices in the state.

The article by the Rocky's Ed Sealover says that Democrats want to:

1. Reinstate Colorado's no-fault auto insurance system, which was jettisoned in 2002;

2. Require health insurers to cover more preventive care services;

3. Forbid the practice of charging women higher health insurance premiums than men; and

4. Raise the maximum age of children of policyholders for whom insurers must make available coverage in exchange for payment of an additional premium.

The article quotes GOP House caucus chair Amy Stephens of Monument as saying her party will oppose at least some of the bills on grounds that they might raise premiums and encourage insurance companies to reduce operations in the state.

Several bills incorporating the proposals have already been introduced.