Rate Review will Apply to Insurance Policies Sold Through Associations
September 7, 2011
On September 1, 2011, the Department of Health and Human Services (HHS) released an amendment to the rate review provisions of the Patient Protection and Affordable Care Act (PPACA). The amendment extends the rate review process to coverage sold to individuals and small groups through associations effective November 1, 2011. No other changes to the current rate review process were announced.
The rate review process under PPACA went into effect on September 1, 2011. The rate review process applies when a rate increase of 10% or more is filed for a non-grandfathered individual or small group product. States that have “effective” rate review programs will conduct the review themselves, while for states identified as having an “ineffective” rate review process, HHS will conduct the review.
Beginning in mid-September, consumers will be able to go to HealthCare.gov to view information explaining proposed increases of 10% or more. Consumers will see a summary of the key factors driving rate increases and an explanation provided by the insurance company for why the proposed increase is needed.
For more information on rate review and today’s announcement, visit: http://www.healthcare.gov/news/factsheets/ratereview09012011a.html
For state-by-state information on rate review, visit: http://www.healthcare.gov/news/factsheets/ratereview09012011b.html
Please bookmark http://informedonreform.com for the latest news and updates.
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