Rate review
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Rate review refers to the process by which a state insurance department may review an insurance company's planned premium increases before they are applied to health plans.[1]
Overview
Rate review refers to the process by which a state insurance department reviews an insurance company's planned premium increases before they are applied to health plans. The Affordable Care Act (ACA) established a requirement that all insurance premium adjustments of 10 percent or more be sent to the state or federal government for review. The government would then analyze the change to determine if it was justified. In such cases, the law also established the requirement for insurance companies to provide information to their customers about why the rates were increasing. [2]
According to the Centers for Medicare and Medicaid Services (CMS), rate reviews prevented premium increases in some areas during 2012 and 2013. CMS asserted that rate review reduced total premiums in the individual and small group markets by approximately $1.2 billion in 2012 and $1 billion in 2013.[3]
As part of the ACA, rate reviews were publicly posted online. Rate review summaries are available here.[2]
See also
- Obamacare overview
- History of healthcare policy in the United States
- Value-based purchasing
- Guaranteed issue
External links
Footnotes
