A new report released by the Centers for Medicare & Medicaid Services (CMS) indicates that 10 states lack sufficient authority under current state law to assess and reject excessive health insurance rate increases, as required under the Affordable Care Act. Under a new regulation, CMS will conduct a review of individual and small group policy rate hikes in excess of 10 percent for these states starting on Sept. 1. In 2012, states will be expected to set their own rate increase thresholds based on market conditions in each state.
The Federal government has already paid 43 states $45 million in grants to help them improve oversight of rate increases. Another $250 million is available.
Healthcare Finance News reports America’s Health Insurance Plans, the industry trade group of health insurers, has long opposed rate review thresholds as arbitrary, arguing that a one-size-fits-all approach doesn’t work since insurance markets vary widely from state to state and, further, that focusing solely on insurance rate increases is only one piece of the overall healthcare cost puzzle. Read More