Ritter Insurance Marketing, Craig Ritter

HHS Offers Grant Funds to States to Fight Health Insurance Premium Increases

HHS announced an additional $200 million available to the states to implement effective Rate Review processes for Health Insurance premium increases.  Currently, if there is an excessive increase (defined as 10% or greater), if the state does not have a review process, the increase will go to the HHS.  However, HHS does not have the power to deny a rate increase.  That said, HHS has a huge stick it can use by refusing to allow carriers to participate in exchanges in 2014.  So, not many insurers will be excited to get into a battle with HHS over “excessive increases”.

Here is the announcement from HHS.

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