HHS: Reform saving consumers more than $1B
The Affordable Care Act saved 6.8 million consumers an estimated $1.2 billion on health insurance premiums in 2012 due to the "rate review" provision, according to a report released by the Department of Health & Human Services (HHS).
“Thanks to the healthcare law, we are seeing that holding insurance companies accountable is leading to increased competition and saving billions of dollars for consumers across the country,” said Kathleen Sebelius, HHS secretary, in a release. “This type of competition and transparency will continue in the health insurance marketplace, or exchanges, where Americans will be able to shop for and compare plans side-by-side to find the one that fits their needs and budget.”
Beginning on Sept. 1, 2011, the federal rate review rules under the healthcare law were implemented. These rules ensure that, in every state, insurance companies are required to submit for review and justify any proposed health insurance premium increase of 10 percent or more.
To assist states in this effort, the Affordable Care Act provides states with Health Insurance Rate Review Grants to enhance their rate review programs and bring greater transparency to the process. Forty-six states, the District of Columbia, and five territories have been awarded rate review grant funds to make the rate review process stronger and more transparent.
Read the complete rate review report here.
Editor
Editor Beth earned a bachelor’s degree in journalism and master’s in health communication. She has worked in hospital, academic and publishing settings over the past 20 years. Beth joined TriMed in 2005, as editor of CMIO and Clinical Innovation + Technology. When not covering all things related to health IT, she spends time with her husband and three children.