PPACA: STATES REVIEW OF HEALTHCARE PREMIUM INCREASES

Under the Affordable Care Act each state has been given the authority to evaluate every instance where carriers are requesting increases of greater than 10% in the individual and small group market.  "Rate review will help bring down the cost for small businesses and consumers.  According to healthcare.gov, "Rate review assesses whether proposed increases in health insurance premiums are based on reasonable estimates, reflecting medical cost trends and health care utilization instead of unjustified assumptions that serve to increase the price to the consumer."  Thanks to grants from the Affordable Care Act, Maryland was able to reduce premium increases in 10 of the 22 rate filings approved during the third quarter of 2010.  On September 1, 2011, HHS (Health and Human Services) issued an amendment that extended the above provision to all individual and small group health plans that are sold through associations effective November 1, 2011.