Guest Opinion

A bill in the North Carolina General Assembly would cut government red tape so some businesses like Blue Cross NC can more efficiently invest its resources, so long as those investments go toward lowering health care costs, increasing access or improving the consumer experience.

Unfortunately, a small but loud minority has made several false claims against the legislation that would lead one to believe the bill does many things it does not and cannot do.

False claim No. 1 is the bill would raise insurance premiums. Not only have opponents failed to support this claim with facts, but it also shows a fundamentally flawed understanding of how insurance premiums work.

Health insurance premiums are subject to state and federal oversight. Federal law requires that at least 80 cents of every premium dollar be used to pay health care bills for policy holders. If a health plan collects too much money and falls below this threshold, then individuals and businesses get a rebate. No state law can override this. In addition, insurance rates must, and will continue to be, approved by the N.C. Department of Insurance.

More:Opinion: Proposed bills threaten affordable health insurance in North Carolina

If anything, House Bill 346 will put downward pressure on premiums as investments are made that lower health care costs.

Take, for example, new investments that reduce emergency room use and instead help consumers find appropriate level of care in more affordable setting. By...

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