Posted By: Bob Beachy, president of Van Osdol & Magruder Here is an article from the Kansas City Business Journal, written by Aly Van Dyke, about the recent health care reform changes and how they will effect the Kansas City community.
Health care reform: Rules, lawsuits and Kansas/Missouri benefits
The Department of Health and Human Services on Tuesday released proposed guidance regarding states’ review of premium increases.
Starting next year, any proposed premium increase of 10 percent or more has to be publicly disclosed and reviewed by state departments of insurance to determine whether the increase is reasonable. After 2011, states will develop their thresholds.
Mind you, these powers concern the review of increases, not the authority to force insurers to adjust the rates. That isn’t a marked change for Kansas, which already has the authority to review rate increases. But Missouri, which doesn’t require insurers to submit proposed increases annually or have the authority to review them, might have to rely on HHS to conduct the reviews. HHS released $1 million to each state and the District of Columbia earlier this year to help with the new oversight requirements. There’s $199 million left for distribution. “The proposed rate review policy will empower consumers, promote competition, encourage insurers to do more to control health care costs and discourage insurers from charging premiums which are unjustified,” Jay Angoff, director of HHS’ Office of Consumer Information and Insurance Oversight, said in the release. Justifications for unreasonable increases will land on HealthCare.gov, and starting in 2014, states can exclude health plans from exchanges if they show a pattern of excessive or unjustified increases. However, that and potential loss of customers are the only consequences insurers face if they disagree with a state’s assessment.
