I 
115TH CONGRESS 
1ST SESSION H. R. 3450 
To amend the Public Health Service Act to provide protections for consumers 
against excessive, unjustified, or unfairly discriminatory increases in pre-
mium rates. 
IN THE HOUSE OF REPRESENTATIVES 
JULY 27, 2017 
Ms. SCHAKOWSKY (for herself, Mr. DEUTCH, Ms. NORTON, Mr. GRIJALVA, 
Mr. POCAN, and Ms. MICHELLE LUJAN GRISHAM of New Mexico) intro-
duced the following bill; which was referred to the Committee on Energy 
and Commerce 
A BILL 
To amend the Public Health Service Act to provide protec-
tions for consumers against excessive, unjustified, or un-
fairly discriminatory increases in premium rates. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Protecting Consumers 
from Unreasonable Rates Act’’. 
VerDate Sep 11 2014 
23:18 Aug 08, 2017
Jkt 069200
PO 00000
Frm 00001
Fmt 6652
Sfmt 6201
E:\BILLS\H3450.IH
H3450
sradovich on DSK3GMQ082PROD with BILLS
SEC. 2. PROTECTION OF CONSUMERS FROM EXCESSIVE, 
UNJUSTIFIED, OR UNFAIRLY DISCRIMINA-
TORY RATES. 
(a) PROTECTION FROM EXCESSIVE, UNJUSTIFIED, 
OR UNFAIRLY DISCRIMINATORY RATES.—The first sec-
tion 2794 of the Public Health Service Act (42 U.S.C. 
300gg–94), as added by section 1003 of the Patient Pro-
tection and Affordable Care Act (Public Law 111–148), 
is amended by adding at the end the following new sub-
section: 
‘‘(e) PROTECTION FROM EXCESSIVE, UNJUSTIFIED, 
OR UNFAIRLY DISCRIMINATORY RATES.— 
‘‘(1) AUTHORITY OF STATES.—Nothing in this 
section shall be construed to prohibit a State from 
imposing requirements (including requirements re-
lating to rate review standards and procedures and 
information reporting) on health insurance issuers 
with respect to rates that are in addition to the re-
quirements of this section and are more protective of 
consumers than such requirements. 
‘‘(2) CONSULTATION
IN
RATE
REVIEW
PROC-
ESS.—In carrying out this section, the Secretary 
shall consult with the National Association of Insur-
ance Commissioners and consumer groups. 
‘‘(3) DETERMINATION OF WHO CONDUCTS RE-
VIEWS FOR EACH STATE.—The Secretary shall de-
VerDate Sep 11 2014 
23:18 Aug 08, 2017
Jkt 069200
PO 00000
Frm 00002
Fmt 6652
Sfmt 6201
E:\BILLS\H3450.IH
H3450
sradovich on DSK3GMQ082PROD with BILLS
termine, after the date of enactment of this section 
and periodically thereafter, the following: 
‘‘(A) In which markets in each State the 
State insurance commissioner or relevant State 
regulator shall undertake the corrective actions 
under paragraph (4), based on the Secretary’s 
determination that the State regulator is ade-
quately undertaking and utilizing such actions 
in that market. 
‘‘(B) In which markets in each State the 
Secretary shall undertake the corrective actions 
under paragraph (4), in cooperation with the 
relevant State insurance commissioner or State 
regulator, based on the Secretary’s determina-
tion that the State is not adequately under-
taking and utilizing such actions in that mar-
ket. 
‘‘(4) CORRECTIVE ACTION FOR EXCESSIVE, UN-
JUSTIFIED, 
OR
UNFAIRLY
DISCRIMINATORY 
RATES.—In accordance with the process established 
under this section, the Secretary or the relevant 
State insurance commissioner or State regulator 
shall take corrective actions to ensure that any ex-
cessive, unjustified, or unfairly discriminatory rates 
VerDate Sep 11 2014 
23:18 Aug 08, 2017
Jkt 069200
PO 00000
Frm 00003
Fmt 6652
Sfmt 6201
E:\BILLS\H3450.IH
H3450
sradovich on DSK3GMQ082PROD with BILLS
are corrected prior to implementation, or as soon as 
possible thereafter, through mechanisms such as— 
‘‘(A) denying rates; 
‘‘(B) modifying rates; or 
‘‘(C) requiring rebates to consumers. 
‘‘(5) NONCOMPLIANCE.—Failure to comply with 
any corrective action taken by the Secretary under 
this subsection may result in the application of civil 
monetary penalties under section 2723 and, if the 
Secretary determines appropriate, make the plan in-
volved ineligible for classification as a qualified 
health plan.’’. 
(b) CLARIFICATION OF REGULATORY AUTHORITY.— 
Such section is further amended— 
(1) in subsection (a)— 
(A) in the heading, by striking ‘‘PRE-
MIUM’’ and inserting ‘‘RATE’’; 
(B) in paragraph (1), by striking ‘‘unrea-
sonable increases in premiums’’ and inserting 
‘‘potentially excessive, unjustified, or unfairly 
discriminatory rates, including premiums,’’; and 
(C) in paragraph (2)— 
(i) by striking ‘‘an unreasonable pre-
mium increase’’ and inserting ‘‘a poten-
VerDate Sep 11 2014 
23:18 Aug 08, 2017
Jkt 069200
PO 00000
Frm 00004
Fmt 6652
Sfmt 6201
E:\BILLS\H3450.IH
H3450
sradovich on DSK3GMQ082PROD with BILLS
tially excessive, unjustified, or unfairly dis-
criminatory rate’’; 
(ii) by striking ‘‘the increase’’ and in-
serting ‘‘the rate’’; and 
(iii) by striking ‘‘such increases’’ and 
inserting ‘‘such rates’’; and 
(2) in subsection (b)— 
(A) by striking ‘‘premium increases’’ each 
place it appears and inserting ‘‘rates’’; and 
(B) in paragraph (2)(B), by striking ‘‘pre-
mium’’ and inserting ‘‘rate’’. 
(c) CONFORMING AMENDMENTS.—Title XXVII of 
the Public Health Service Act (42 U.S.C. 300gg et seq.) 
is amended— 
(1) in section 2723 (42 U.S.C. 300gg–22), as 
redesignated by the Patient Protection and Afford-
able Care Act— 
(A) in subsection (a)— 
(i) in paragraph (1), by inserting 
‘‘and section 2794’’ after ‘‘this part’’; and 
(ii) in paragraph (2), by inserting ‘‘or 
section 2794’’ after ‘‘this part’’; and 
(B) in subsection (b)— 
(i) in paragraph (1), by inserting 
‘‘and section 2794’’ after ‘‘this part’’; and 
VerDate Sep 11 2014 
23:18 Aug 08, 2017
Jkt 069200
PO 00000
Frm 00005
Fmt 6652
Sfmt 6201
E:\BILLS\H3450.IH
H3450
sradovich on DSK3GMQ082PROD with BILLS