The U.S. will review health insurer requests to raise premiums for individuals and small businesses at least 10% in 10 states, ruling that local regulators aren't adequately policing rates.
The U.S. will review health insurer requests to raise premiums for individuals and small businesses at least 10 percent in 10 states, ruling that local regulators aren't adequately policing rates.
The decision by the federal Center for Consumer Information and Insurance Oversight comes less than two months before insurers such as WellPoint Inc. will be required to publicly justify such increases under the health-care overhaul.
The insurance industry has criticized the rate-review process, arguing that the government should focus on underlying health-care costs that drive premium increases.
“Review of premiums should continue to be done at the state level because states have the experience, infrastructure and local market knowledge to best regulate health insurance,” said Robert Zirkelbach, a spokesman for America's Health Insurance Plans in Washington, the industry's trade group.
Seven states don't effectively regulate insurer premiums, according to the center, part of the U.S. Centers for Medicare and Medicaid Services. They are Alabama, Arizona, Idaho, Louisiana, Missouri, Montana, and Wyoming. All but Missouri and Montana have Republican governors.
Three other states -- Iowa, Pennsylvania and Virginia -- regulate premium increases in either the individual or small-business market, though not both, the center said.
The U.S. health-care overhaul requires insurers to justify premium increases of 10% or more beginning Sept. 1. State or federal regulators are empowered to determine whether the increases are reasonable.
--Bloomberg News--
