Insurance companies are pushing for lengthy delays in the enactment of a law that would require them to summarize the benefits plans they provide. According to the Affordable Care Act, health insurance providers must summarize their policies to within four pages of easily understood content. The law is meant to provide consumers with a better understanding of the benefits they will be receiving and what their policies do and do not cover. The Department of Labor, however, has announced that it will not be forcing insurance companies to be adhering to this provision, at least for the time being.
All insurers were required to comply with the law by March of this year. The agency has decided that it will give companies more time to comply, however, hoping that the extra time will be beneficial for small companies. The decision has been met with opposition from consumer advocacy groups who claim that the simplified summaries of insurance policies are necessary to help people know what kind of deal they are getting into with insurers.
Though the Department of Labor has plans to allow more time for insurers to comply with the law, the agency has not yet received approval for the plan from the Office of Budget and Management. The agency plans to submit the proposal this week and, if approved, will work to make the regulation a reality.
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