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.

"The proposed rate review policy will empower consumers, promotecompetition, encourage insurers to do more to control health carecosts and discourage insurers from charging premiums which areunjustified," said Jay Angoff, director of HHS' Office of ConsumerInformation and Insurance Oversight, in a released statement.

The department has begun awarding grants to states to strengthen their reviewsystem of rate increases. In August, HHS awarded $46 million to 45states and the District of Columbia. This is part of $250 millionthat the health reform law makes available to states to take actionagainst insurers seeking unreasonable rate hikes.

States with effective review systems will conduct the ratereviews, otherwise the task falls to HHS.

The department says it will continue to make resources availableto states to strengthen their rate review processes.