Consumer Groups Call for Insurance Rate Cuts
The Consumer Federation of America and the Center for Economic Justice sent a letter to insurance commissioners in all 50 states on January 23, asking them to step in and order rate cuts from insurers that benefit from the reduction in the corporate income tax under the new tax law.
“CFA requests immediate action to require insurers to file lower rates to reflect the federal tax legislation passed by Congress late last year and effective for 2018 forward,” the letter states. “CFA calls attention to the fact that, in another regulated industry, many utility companies have already announced plans to cut rates due to the ‘expected windfall they plan to receive when corporate taxes are cut.’”
The consumer groups allege that absent action by state insurance regulators to force insurers to lower rates, a “tax-related profit windfall of $25 billion or more would not benefit insurance consumers.”