AFFORDABLE CARE ACT CONSUMER DISCLOSURE NOTICES TO BRING UNPRECEDENTED LEVEL OF TRANSPARENCY TO HEALTH INSURANCE MARKETPLACE
Proposed notices detail information insurance plans would have to give to consumers to justify rate increases over 10 percent
Today, the Centers for Medicare & Medicaid Services (CMS) published proposed consumer disclosure notices, required by the Affordable Care Act, that insurers would be required to complete and report electronically when they propose rate increases over 10 percent. The information provided would give consumers detailed information about proposed increases that could be easily accessed on the HHS website. The notices would help consumers know what their insurance companies are proposing while the rate increase requests are being reviewed.
These proposed notices are related to the Affordable Care Act premium rate review regulation that HHS issued in December of 2010, which would apply to non-grandfathered insurance plans in the individual and small group markets.
Under the proposed rules, if your insurer tries to raise rates at or above a certain threshold amount that rate increase is subject to review by either State insurance officials or HHS if the State does not have an effective process for reviewing rates. The proposed threshold for the first year is 10%. After 2011, a state-specific threshold will be set for disclosure of rate increases, using data and trends that better reflect cost trends particular to that state