On Tuesday, April 2, 2024, the Colorado Division of Insurance coverage (“Division”) held its second Unfair Discrimination in Insurance coverage Practices – Well being Insurance coverage Stakeholder assembly the place the Division mentioned efforts to develop laws addressing governance and threat administration framework necessities for well being insurers’ use of exterior shopper information and knowledge sources, algorithms, and predicative fashions. The assembly introduced a chance for stakeholders to offer feedback and insights with respect to their positions on how the Division ought to proceed.
One key consideration for the Division is whether or not there needs to be a separate set of governance and framework laws for well being insurers or if the prevailing laws relevant to life insurers needs to be revised to include well being insurers. At the moment, the Division views the governance and threat administration framework rules as transcending the strains of insurance coverage, nonetheless, separate laws by line of insurance coverage could also be mandatory to handle quantitative testing necessities. The Division will seemingly start the formal rule-making course of for governance and threat administration framework laws for each medical health insurance, and beforehand mentioned personal passenger auto insurance coverage, someday in April 2024.
The Division has not acquired many written feedback from stakeholders because the final stakeholder assembly. In the course of the April 2nd assembly, a number of shopper teams raised issues concerning the suitability of the info that’s used to coach the fashions in medical health insurance. Client teams are involved that the info will replicate current basic disparities and inequities that can be exacerbated and extended when the info is used to coach the fashions. They mentioned whether or not solely testing the out places of the mannequin could be adequate or whether or not there must be extra scrutiny of the info that goes into the mannequin. We anticipate that these issues additionally can be raised once more when the Division strikes ahead with creating laws addressing quantitative testing of well being insurers’ fashions.
