Federal regulators have provided more funding for state efforts to block what officials believe to be unreasonable health coverage premium increases.
Officials from the U.S. Department of Health and Human Services (HHS) and the Center for Consumer Information and Insurance Oversight (CCIIO) – the HHS arm that is overseeing implementation of many components of the Patient Protection and Affordable Care Act of 2010 (PPACA) – say $109 million in grants will go to 28 states and the District of Columbia.
PPACA authorized HHS to work with the states to develop a health insurance rate review program, and HHS has decided that proposals to increase individual and small group rates more than 10% should get extra scrutiny.
States can run their own rate review programs or let HHS handle rate reviews.
The rate review requirements started to take effect Sept. 1.
PPACA provided a total of $250 million in state rate review program funding. HHS previously has awarded $48 million of that funding to 42 states, the District of Columbia and 5 territories, HHS officials say.