Annual Review of Premium Increases

In 2010, effective immeadiately, the HHS secretary and states will establish a process for annual review of unreasonable premium increases. Health insurers will be required to submit to the secretary and the relevant state a justification for an unreasonable increase prior to implementation of the increase. The information will be required to be posted on insurers’ Web sites. The bill appropriates $250 million to the secretary for grants ($1m to $5m) to states between 2010 and 2014 to review and approve carrier premium increases. As a condition of receiving a grant, state insurance commissioners will be required to provide the secretary with information on trends in premium increases in the state and make recommendations to the state insurance exchanges on whether aparticular insurance carriers should be excluded from participation based on a pattern of excessive or unjustified premium increases.

Source: The Common Wealth Fund