Health Insurance Rate Review Act earns the support of Montana Senator
Montana Senator Jon Tester has announced his support of a new legislation that would give states the ability to block what they consider unreasonable health insurance rate hikes. The legislation is known as the Health Insurance Rate Review Act and will grant state Insurance Commissioners expanded authority over rate proposals coming from health insurance companies. Per the legislation, regulators will be able to deny or modify increases to health insurance rates. They will also be able to require insurers to issue rebates to consumers if necessary.
Legislation to provide state regulators with more authority
On the surface, the legislation may seem redundant due to the provisions of the Affordable Care Act. The federal health care law requires insurance companies to provide adequate justification for the increases they want to make to health insurance rates. The law does not, however, provide state regulators with the authority to deny or modify these proposals. Thus, the Health Insurance Rate Review Act is gaining support in order to allow for states to have more control over their health insurance industries.
Health insurance rates continue to be a controversial issue
Health insurance rates throughout the country are on the rise. Insurers have various reasons for raising rates, but higher premiums are not often well received by consumers. Insurance regulators have been fighting for more authority in the rate review process. The fight has been particularly heated in California, where some insurance companies have been seeking rate increases that are considered by regulators as excessive and irresponsible.
Health Insurance Rate Review Act may help states comply with federal law
The Affordable Care Act has brought many changes to health insurance and the health care industry, but it has not been able to provide regulators with expanded authority in the rate review process. According to the law, states are required to have an adequate rate review process or risk having the federal government take charge of the process. The Health Insurance Review Act may provide states with the ability to comply with this provision of the federal health care law.
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