Early results of state government rate reviews on health insurer premium increases suggest insurers are no longer receiving rubberstamped rate hikes, according to a report from the Kaiser Family Foundation (pdf).
Under the Patient Protection and Affordable Care Act, any health insurer that requests a premium rate increase of 10 percent or more for individuals and small businesses are subject to a rate review program by the state insurance department. If a state does not have a proper rate review program, HHS makes the final call on the premium rate requests.
The report found that in 2011, 20.1 percent of all rate requests from health insurers resulted in a lower rate increase or no rate increase. In addition, the average approved rate increase was 1.4 percent lower than what insurers initially requested.
In total, the KFF looked at 846 rate filings from 41 states and the District of Columbia. Oregon lowered, rejected or withdrew the most rate requests in 2011 with 29 followed by Connecticut and Nevada. The report said that the trend of lower approved rate hikes may also be hindering health insurers from submitting premium requests that are higher than 10 percent.
"Early evidence from filings submitted just before and just after the implementation of the ACA's rate review requirements suggests that these requirements are having an effect," according to the report. "Although the average rate change requested remained fairly constant throughout the year…insurers appear to be submitting fewer requests above the 10 percent threshold following implementation of the ACA's rate review standards."
Under the Patient Protection and Affordable Care Act, any health insurer that requests a premium rate increase of 10 percent or more for individuals and small businesses are subject to a rate review program by the state insurance department. If a state does not have a proper rate review program, HHS makes the final call on the premium rate requests.
The report found that in 2011, 20.1 percent of all rate requests from health insurers resulted in a lower rate increase or no rate increase. In addition, the average approved rate increase was 1.4 percent lower than what insurers initially requested.
In total, the KFF looked at 846 rate filings from 41 states and the District of Columbia. Oregon lowered, rejected or withdrew the most rate requests in 2011 with 29 followed by Connecticut and Nevada. The report said that the trend of lower approved rate hikes may also be hindering health insurers from submitting premium requests that are higher than 10 percent.
"Early evidence from filings submitted just before and just after the implementation of the ACA's rate review requirements suggests that these requirements are having an effect," according to the report. "Although the average rate change requested remained fairly constant throughout the year…insurers appear to be submitting fewer requests above the 10 percent threshold following implementation of the ACA's rate review standards."
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