Oregon Committee Discusses Age Rating Elimination in Health Insurance Bill

The Oregon House Committee on Behavioral Health and Health Care convened on May 13, 2025, to discuss significant changes proposed in Senate Bill 1181 regarding health insurance rating practices. The bill aims to eliminate age as a factor in determining insurance premiums, which has sparked a robust debate among committee members and stakeholders.

During the meeting, a key point of discussion was whether individuals aged 75 would continue to pay the same premium as younger policyholders if the bill passes. The original version of the bill proposed that age would no longer influence rates, allowing for equal premiums across different age groups. However, an amendment introduced would revert to the current system, permitting insurance carriers to set rates based on age, which some committee members expressed concerns about.

Representative McDonough raised questions about the necessity of the bill, highlighting the importance of insurance coverage and inquiring about data on consumer complaints and switching rates among policyholders. The Department of Consumer and Business Services (DCBS) indicated that while they receive inquiries and complaints, they had not conducted a comprehensive survey on the matter prior to the hearing.

The committee also heard from opponents of the bill, including representatives from America's Health Insurance Plans (AHIP), who expressed their concerns about the implications of the proposed changes. They acknowledged previous discussions with stakeholders but maintained their opposition to the bill, emphasizing the potential risks involved in altering the current rating system.

As the meeting progressed, the committee aimed to foster a balanced discussion by inviting both proponents and opponents of the bill to share their perspectives. The outcome of this legislative discussion could significantly impact health insurance practices in Oregon, particularly for older residents who may face varying costs based on age. The committee plans to continue deliberations on the bill, weighing the benefits of equitable pricing against the realities of insurance underwriting practices.