Health Law’s Premium Rate-Review Provision

Under a health reform law provision that goes into effect Sept. 1, states and the federal government will scrutinize health insurance company’s proposals for rate increases on individual and small-employer plans.  Insurers will be required to submit a seven-page document, justifying the increase to the Department of Health and Human Services (HHS) Also, information on any insurers that propose premium increases exceeding 10 percent will be posted on the HHS website.  It remains to be seen, however, whether bad publicity will deter insurers from implementing the proposed rates, as the reform law does not give HHS the authority to block the increases.