A bill that sought to criminalize incentives that might be paidto claim handlers for denying claims in Colorado failed to make itout of the state's House of Representatives.

The bill, SB 09-103, would have added the following language toColorado's unfair claim settlement practices act as a deceptivepractice: "The act of providing any pay, salary, rewards, bonus,promotion, or other financial incentive to any person involved inthe review of a claim for benefits or to persons performingutilization review, in connection -- directly or indirectly -- withthe denial of a claim made by an insured or claimant or thecancellation of an insurance policy."

The bill was sponsored by Rep. Jack Pommer, D-Boulder, and Sen.Morgan Carroll, D-Aurora. It was originally introduced to theSenate in late January 2009, passed by the Senate with amendmentson March 20, then passed again on March 23. However, on March 30, aHouse Committee on Health and Human Services postponed the billindefinitely, effectively killing the measure.