Feds urge states to increase ACA rate reviews

The Obama administration is urging states to be more aggressive against health insurance companies as it looks to prevent expected and widespread premium hikes of 10 percent or more this year (Source: “White House urges states to resist ObamaCare hikes,” The Hill, June 15, 2016).

The federal health department announced Wednesday that it will spend about $22 million to support state-level rate reviews, considered one of the strongest weapons against premium increases. Under the system, health insurers are required to justify rate increases to state insurance departments, some of which have the power to reject “unreasonable” increases.

With the new funding, federal health officials hope states can hire outside insurance experts to dig deeper into the proposed rates and prove the hikes are unjustified.