New proposed federal rules will allow the Department of Health and Human Servicesto work with states on health insurance rate reviews, and willrequire carriers to publicly justify rate increases that areconsidered unreasonable. The process will help states filter healthplans with a pattern of excessive or unjustified rate hikes out ofnew health insurance exchanges in 2014.
The proposed regulation, announced Tuesday by HHS, will requirecarriers in 2011 to publicly disclose rate increases of 10 percent or higher. The rate hike will alsobe "thoroughly reviewed" to determine if it's unreasonable.
After 2011, state-specific thresholds would be set using dataand trends that better reflect cost trends particular to eachstate, according to HHS. Insurance company's justifications forunreasonable increases will be posted on HealthCare.gov and theinsurance plan's website.
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