The increases were made in five states — Alabama, Arizona, Pennsylvania, Virginia and Wyoming — before independent experts reviewed them. HHS said in the release the rate increases were unreasonable because not enough premium dollars would have been spent on actual medical care and quality measures. In total, the rate hikes would have affected nearly 10,000 people.
Starting Sept. 1, 2011, health insurers looking to increase their rates by 10 percent or more must submit their request to state or federal regulators who will determine if the hikes are acceptable, as part of the Patient Protection and Affordable Care Act.
In November, HHS struck down a 12-percent rate increase from health insurer Everence Insurance of Pennsylvania. States also have the authority to reject unreasonable premium increases. In October, Pennsylvania’s Insurance Department approved a 4.9 percent health premium increase for Highmark’s Special Care health plan after Highmark previously requested a 9.9-percent increase.
Related Articles on Health Premium Increases:
HHS Nails Pennsylvania Insurer for “Unreasonably High” Premium Increases
New Affordable Care Act Grants to Mitigate High Premium Increases
Double-Digit Health Insurance Rate Hikes Now Must Be Justified
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