In an attempt to provide consumers with added protection in the insurance market, new federal regulations will require health insurance companies to disclose and justify any rate increases of 10% or more next year. State or federal officials will then review such increases to determine reasonability.
The summary of the proposed requirements in the Code of Federal Regulations state:
“This document contains proposed regulations implementing the rules for health insurance issuers regarding the disclosure and review of unreasonable premium increases under section 2794 of the Public Health Service Act. The proposed rule would establish a rate review program to ensure that all rate increases that meet or exceed an established threshold are reviewed by a State or HHS to determine whether the rate increases are unreasonable. The proposed rule represents a major expansion of federal authority in an area long regulated by states.” … Read more →