The Obama administration has issued the final rules regarding how insurance companies will make policies easier to understand this week. The government has been working on the rules since the passing of the Affordable Care Act in 2010. The endeavor aims to make the language of insurance policies more clear and straightforward. There have been some delays in the initiative as insurance groups asserted that some policies could not be simplified because they did not cover simple circumstances. Nonetheless, the final rules have been issued this week, requiring all insurers to make changes to the language of their policies as needed.
Consumer purchasing new insurance plans or renewing their policies will receive a form which outlines the features of their policy. This will allow consumers to compare multiple policies without worry of confusion. Policies that cover certain forms of cancer will not need to be simplified, as cancer is often a complicated issue for consumers, insurers and health care organizations.
Insurance regulators will begin enforcing the rules this week. Some insurers have been granted exemptions from the rules because they provide coverage solely for critical illnesses. Others have sought exemption but were denied by the Department of Health and Human Services. The federal government believes that easily understood insurance policies will help protect consumers from purchasing policies that are not appropriate for their specific needs.
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