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Entries in Rate Increases (1)

Monday
Aug292011

Federal Regulators to Probe Health Insurance Rates

Creatas Images/Thinkstock(WASHINGTON) -- On Thursday, the Obama administration plans to begin probing any proposed increases of health care premiums that exceed nine percent, The Wall Street Journal reports.  The close inspection of these rate increases are part of the administration's 2010 health-overhaul law.

Significant rate increases have taken place in recent years, particularly for those who received policies through small business employers and those who purchased their own.  The new attention to rate increases is expected to apply to nearly 34.8 million insurance policies, WSJ reports.

Industry lobbying group America's Health Insurance Plans found half of all increases on health insurance premiums in the individual insurance market were greater than 10 percent over the past three years, according to WSJ.

Now, insurers will be required to submit a seven-page form including justification for increases of 10 percent or more to federal regulators.  Though the government cannot legally prohibit these increases, the administration hopes that public disclosure of rate increases will be a deterrent for insurers.

Large increases will be posted on the Department of Health and Human Services' website.

Copyright 2011 ABC News Radio







ABC News Radio