Health Coverage Through Associations To Come Under Rate Increase Review.

CQ (11/2, Reichard, Subscription Publication)
reports, “Starting Tuesday some rate increases for health coverage
provided through associations must be reviewed by government regulators to
determine whether the hikes are reasonable in the government’s view. The Nov. 1
effective date of the requirement brings association coverage under the same
type of scrutiny that applies to other types of insurance plans in the
individual and small-group markets. The rate review procedure, established
under the health care law (PL 111-148, PL 111-152), requires insurers to give a
detailed explanation of their reasons for raising premiums if they propose an
increase of 10 percent or more.” HHS officials say this will allow them to
“scrutinize a large chunk of the individual and small-group market that
otherwise would escape review” and “guarantees that insurers can’t
game the system and move coverage currently sold in the traditional individual
and small-group markets to the association plan market.”

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