Why health insurance is now like a box of Wheaties

Why health insurance is now like a box of Wheaties
Truth-in-labeling law comes to medical insurance biz; 'plain English'
MAY 17, 2011
By  John Goff
Health insurers will have to provide descriptive labels similar to those found on food products under a consumer-information provision in the 2010 health overhaul the U.S. began rolling out today. The draft rules will make insurers such as Indianapolis- based WellPoint Inc. (WLP), the largest U.S. health insurer by enrollment, detail coverage costs, deductibles and payments for common services, including delivering a baby. “Many consumers don't have easy access to information in plain English to help them understand the differences in the coverage and benefits provided by different health plans,” said Kathleen Sebelius, the U.S. Secretary of Health and Human Services. The rules change that, she said. Sebelius's department is implementing the 2010 law that calls for labeling similar to that used by food companies. The Congressional Budget Office estimated will let 23 million uninsured people buy health coverage from private plans by 2017. Consumer protections in the health-care law are designed to force insurers to compete based on price and service and not exclude sicker, more costly patients, Sebelius has said. The rules were announced in a statement today from the Health and Human Services Department in Washington. WellPoint was reviewing the rules and deferred immediate comment to America's Health Insurance Plans, the industry's Washington-based lobby group, said Kristin Binns, a spokeswoman for the company. Robert Zirkelbach, a spokesman for the trade group, said the group is reviewing the regulations.

Latest News

JPMorgan tells fintech firms to start paying for customer data
JPMorgan tells fintech firms to start paying for customer data

The move to charge data aggregators fees totaling hundreds of millions of dollars threatens to upend business models across the industry.

FINRA snapshot shows concentration in largest firms, coastal states
FINRA snapshot shows concentration in largest firms, coastal states

The latest snapshot report reveals large firms overwhelmingly account for branches and registrants as trend of net exits from FINRA continues.

Why advisors to divorcing couples shouldn't bet on who'll stay
Why advisors to divorcing couples shouldn't bet on who'll stay

Siding with the primary contact in a marriage might make sense at first, but having both parties' interests at heart could open a better way forward.

SEC spanks closed Osaic RIA for conflicts, over-charging clients on alternatives
SEC spanks closed Osaic RIA for conflicts, over-charging clients on alternatives

With more than $13 billion in assets, American Portfolios Advisors closed last October.

William Blair taps former Raymond James executive to lead investment management business
William Blair taps former Raymond James executive to lead investment management business

Robert D. Kendall brings decades of experience, including roles at DWS Americas and a former investment unit within Morgan Stanley, as he steps into a global leadership position.

SPONSORED How advisors can build for high-net-worth complexity

Orion's Tom Wilson on delivering coordinated, high-touch service in a world where returns alone no longer set you apart.

SPONSORED RILAs bring stability, growth during volatile markets

Barely a decade old, registered index-linked annuities have quickly surged in popularity, thanks to their unique blend of protection and growth potential—an appealing option for investors looking to chart a steadier course through today's choppy market waters, says Myles Lambert, Brighthouse Financial.