The federal government has increased scrutiny of Arizona health insurance companies, as regulators target companies for "unreasonable" rate increases and pledge to review proposed rate increases for 32 health insurance plans, according to a Tucson Citizen report.
HHS said last week that Trustmark Life Insurance's plan to increase health insurance rates by 13 percent in Arizona is unreasonable. Regulators asked the company to rescind, refund or justify the increases.
HHS has begun similar reviews on 32 other health insurance companies that have proposed rate increases ranging from 14-44 percent this year. This is the first time Arizona consumers have had access to detailed rate information on insurance companies in the state. On Sept. 1, HHS took over review of health insurance rate increases of 10 percent or more from the Arizona Department of Insurance, following a statement by HHS that Arizona did not have regulations in place for effective review.
The federal government cannot reject or modify rate increases, but the law requires health insurance companies to spend 80-85 percent of revenue on medical care rather than administrative costs or profits. Companies that do not meet the ratio must give rebates to customers starting later in 2012.
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HHS said last week that Trustmark Life Insurance's plan to increase health insurance rates by 13 percent in Arizona is unreasonable. Regulators asked the company to rescind, refund or justify the increases.
HHS has begun similar reviews on 32 other health insurance companies that have proposed rate increases ranging from 14-44 percent this year. This is the first time Arizona consumers have had access to detailed rate information on insurance companies in the state. On Sept. 1, HHS took over review of health insurance rate increases of 10 percent or more from the Arizona Department of Insurance, following a statement by HHS that Arizona did not have regulations in place for effective review.
The federal government cannot reject or modify rate increases, but the law requires health insurance companies to spend 80-85 percent of revenue on medical care rather than administrative costs or profits. Companies that do not meet the ratio must give rebates to customers starting later in 2012.
Related Articles on Coding, Billing and Collections:
The Problem With ASC Reimbursement Methodology: 4 Thoughts From Tri-City Orthopaedic Clinic's Scott Faringer
Surgery Center Coding Guidance: Telescopic Intraocular Lens
MedPAC Recommends 0.5% Payment Increase for ASCs