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Court decision preserves affordable health care insurance |
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Written On: Monday, August 27, 2007 |
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Written By: Richard Davis |
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Spokane, Wash.— Today’s decision by Judge Kathleen M. O’Connor protects the affordable health insurance provided to hundreds of thousands of Washingtonians through associations and other member governed groups.
The Association of Washington Business and Associated Industries filed a lawsuit in Spokane County Superior Court in February, urging the court to overturn a Technical Assistance Advisory issued by state Insurance Commissioner Mike Kreidler. The TAA threatens the affordable health insurance offered by associations to small employers by changing the law passed by the Legislature and signed by the governor in 1995 and improperly establishing new legal requirements governing premium rates for these plans.
Today, Judge O’Connor granted AWB and AI a motion for summary judgment, declaring the advisory invalid and unenforceable. AI President Jim DeWalt and AWB President Don Brunell praised the decision.
"Although going to court is always a last resort for us, we acted in the best interest of the 2,300 small businesses who get their health insurance through our HealthChoice plan," said Brunell. "Plans like ours were made possible by action taken in 1995 with the leadership of Gov. Mike Lowry and the Legislature. As a result, thousands of small businesses can now afford to provide health insurance to their workers. We could not let those plans be put at risk."
DeWalt said that this is the first time in nearly 100 years that AI has filed a lawsuit against a regulator.
"We had to defend our ability to provide affordable health care coverage," he said. "We believed the insurance commissioner exceeded his authority by attempting to change law through a TAA. More important, we believe the consequences of his actions would have deprived thousands of hard-working employees of an important health insurance option."
"Judge O’Connor was attentive and well informed," said Jeffrey Gingold, an attorney with Lane Powell, was one of the attorneys representing AI and AWB. "We are very pleased with her decision, which allows AWB and Associated Industries to continue providing affordable options to small employer members of their associations."
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