New Iowa law requires insurance companies to give more notice on rate hikes

Gov. Chet Culver has signed into law a measure requiring state insurance regulators to hold public hearings when companies propose rate increases and issue an annual report about insurance rates.

Companies also must give 30 days notice when they plan increases.

Speaking Friday at a bill-signing ceremony, Culver argued the measure would make the rate-setting process more open and give customers greater warning of increases.

Legislators approved the measure after Wellmark Blue Cross and Blue Shield announced an average 18 percent increase for about 80,000 customers.

State insurance regulators can roll back proposed rate increases but have argued they must balance consumer concerns with the need to keep insurance providers financially sound.

-- Associated Press