OLYMPIA, Wash. – A bill to allow state regulators to consider non-profit health insurers' large surpluses when reviewing proposed premiums cleared a key state Senate committee on Monday night.

"The state's three major insurers -- all of whom are non-profit companies -- have amassed more than $2.4 billion in surplus," said Insurance Commissioner Mike Kreidler. "Yet under current law, I cannot consider a company's surplus when reviewing rates. It's like trying to ignore the elephant in the room."

The bill, Substitute Senate Bill 5247, would give Kreidler the authority to take those surpluses into account. At least 11 other states, including Oregon, have similar authority already.

"From 2005 to 2011, the cost of individual health policies in Washington more than doubled," said Kreidler. "By factoring surplus into our rate reviews, I'd like to moderate future rate hikes for families struggling to afford coverage. It wouldn't be a panacea, but it would help."

On Monday night, the Senate's Health and Long-Term Care Committee, chaired by Sen. Karen Keiser, voted the bill out of committee. It would only apply to nonprofit health insurers, which comprise most of the market here in Washington state.

"The proposal still has a long way to go," said Kreidler. "But I'm grateful to Sen. Keiser and to Sen. Steve Conway, the prime sponsor, for supporting this important consumer protection."

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