Bill would create position of consumer advocate in insurance rate hearings

By Cy Ryan

Monday, April 18, 2011 | 4:22 p.m.

CARSON CITY – The Assembly has approved a bill to create an Office of Consumer Advocate to represent the public in rate hearings involving health insurance.

But the position would be established only if there was federal money to pay for it.

Assembly Bill 390 gives the state insurance commissioner the duty to apply for grants and donations to pay for the advocate, who would be appointed by the governor and could be fired by the governor.

The advocate would have available the records of insurance companies in any hearing representing the public. The bill would eliminate a law that allows the so-called trade secrets of companies to be kept confidential.

Assembly Speaker John Oceguera, D-Las Vegas, said the consumer would be better represented under the bill, which he sponsored. The measure goes to the Senate.

There has been testimony that $4 million in federal funds would be available for the next four years to pay for the position. If there is no money, the governor could abolish the office.

Consumers would be able to request a public hearing of a health insurance rate increase under certain circumstances. The proposed increase would have to be 10 percent higher than the present rate or the company’s policy would have to represent more than 5 percent of the market share in Nevada.

The bill, approved 33-9, would require each health insurance policy, including all provisions, premiums rates and medical loss ratio, be posted online.

Voting against the measure were Republicans John Hambrick, Richard McArthur, Melissa Woodbury and Scott Hammond all of Las Vegas, Ira Hansen of Sparks, Cresent Hardy of Mesquite, Randy Kirner of Reno, Kelly Kite of Minden and Mark Sherwood of Henderson.