On December 21, 2010 the U.S. Department of Health and Human Services (HHS) proposed a new regulation expanding federal oversight of health insurance rate increases.
Starting July 1, 2011, all insurers in the individual and small group market seeking a rate increase of 10% or more must publicly disclose and justify the proposed increase. After 2011, a state-specific threshold will be set for the disclosure of rate increases, using data that better reflects costs trends in each state. If HHS determines that a state does not have an effective rate review process, it will conduct the review. Forty-three states, including Connecticut, already have a rate review process, some of which allow the state to block increases their regulators deem unjustified.
HHS will post rate review decisions, along with justification provided by insurance companies for those increases deemed unreasonable, on its website. Each insurance plan must also post its justification for a rate increase on its website.
Kaiser Health News has more information.
