HHS Issues Rule on Major Insurance Premium Hikes

 
 
June 16, 2011 – In May, HHS (Department of Health & Human Services) released a final rule that will allow states to scrutinize insurance companies if they propose excessive increases in insurance premiums.  The rule would give states the authority to issue a review of any insurer that raises premiums for small-group or individual health insurance plans by more than 10% in a given year.  For states that do not have the resources or authority to review rates, HHS will serve in a back-up role.  HHS has awarded $44 million in Affordable Care Act grants to states to help strengthen their oversight capabilities.  An additional $200 million will continue to be available to states under the Act.
 
If an insurer hikes rates 10% or more, the company will have to publicly report it and justify the hike.  Starting in 2012, states can choose their own threshold at which a review would be triggered.
 
Click below for more information about this final rule.
 
Insurance Rate Reviews

Tags: Healthcare Reform