Beginning tomorrow, Idaho and eight other states will face tighter scrutiny on insurance rates.
As part of the Affordable Care Act, the Centers for Medicare and Medicaid Services will take a closer look at health insurance rates for individuals and small groups. Starting Thursday, Sept. 1, rate increases higher than 10 percent will be reviewed by most states. But Idaho and eight other states don't have set standards for such a review. As a result, CMS will be doing the oversight.
As part of the new restrictions, insurers will have to submit a justification for any increase of 10 percent or more to CMS prior to implement the rate hike. CMS and the insurers will both post the justifications on their respective websites.
Consumers Union has developed a state model rate review for individual market plans and is working to encourage states to adopt reforms that ensure greater oversight, transparency and insurance company accountability.