Health Insurers Must Validate Increases in Rates Above 10%
The Obama Administration demands that Health Insurers rationalize rate increases above 10% or deemed unfairly discriminatory, excessive, unreasonable, or unjustified, to protect patients. This act is to prevent unnecessary rises in rates, making health insurance too expensive for more and more families each year. By 2012, a rate increase threshold will be set for each state depending on the state’s insurance and medical costs trends. Coverage has been rising as a result of doctors and medical centers demanding high reimbursement rates which caused healthier and younger patients to terminate their coverage, leaving the sick in the insurance pool.
If an health insurance company needs to justify a rate increase, it must reveal proof containing claims experience, estimated medical costs, compensation, etc.
This gives us a little optimism for the next few years if you are a small employer who purchases NY Health Insurance or NJ Health Insurance.
The Obama Administration demands that Health Insurers rationalize rate increases above 10% or deemed unfairly discriminatory, excessive, unreasonable, or unjustified, to protect patients. This act is to prevent unnecessary rises in rates, making health insurance too expensive for more and more families each year. By 2012, a rate increase threshold will be set for each state depending on the state’s insurance and medical costs trends. Coverage has been rising as a result of doctors and medical centers demanding high reimbursement rates which caused healthier and younger patients to terminate their coverage, leaving the sick in the insurance pool.
If an health insurance company needs to justify a rate increase, it must reveal proof containing claims experience, estimated medical costs, compensation, etc.
This gives us a little optimism for the next few years if you are a small employer who purchases NY Health Insurance or NJ Health Insurance.
