As part of the health reform law, states will receive $250 million over five years to identify and challenge unreasonable insurance rate increases, according to a report from Bloomberg News.
The funding starts with $51 million this year. HHS still needs to define what "unreasonable" rate increases are. The agency will pay as much as $1 million in the first round of hiring actuaries and expanding computer systems.
Regulators in 41 states already are empowered to reject premium increases. Under the new law, they would also be able to recommend removal of an insurer from the new purchasing exchanges, which start in 2014 and are expected to serve 8 million customers.
Despite the heightened oversight, a consultant said insurers are still likely to win approval for most rate increases based on rising medical costs, because regulators don’t want to drive health plans out of a market.
Read Bloomberg News' report on health insurance regulation.
The funding starts with $51 million this year. HHS still needs to define what "unreasonable" rate increases are. The agency will pay as much as $1 million in the first round of hiring actuaries and expanding computer systems.
Regulators in 41 states already are empowered to reject premium increases. Under the new law, they would also be able to recommend removal of an insurer from the new purchasing exchanges, which start in 2014 and are expected to serve 8 million customers.
Despite the heightened oversight, a consultant said insurers are still likely to win approval for most rate increases based on rising medical costs, because regulators don’t want to drive health plans out of a market.
Read Bloomberg News' report on health insurance regulation.