Forty-five states have each received a $1 million federal grant to bolster their insurance rate review capability. In addition the $45 million already dispersed, another $200 million has yet to be allocated. The U.S. Department of Health and Human Services is asking states to scrutinize any insurance premium rate increases of 10 percent or more. Much like states now regulate rate increases proposed by utility companies and auto insurors, the federal government wants states to better regulate health insurance increases as well.
The National Association of Insurance Commissioners reports that in at least 28 states, no prior approval is necessary for insurance companies to increase premiums on small businesses. Supporters say the grant money and more regulation could help curb increasing rates. In fact, according to stateline.org, insurance premiums nationally have gone up more than 16 percent since the Affordable Care Act was enacted a little more than a year ago. In some parts of the country, increases have been as much as 30 percent.
But opponents say grant money is not enough. The states must accept the money and have the congressional support to pass laws giving more authority to regulatory agencies. Currently, nearly half the states still lack the lack legal authority to reject an insurance company’s rates, and many that have the authority fail to use it.