Posts Tagged - ‘health insurance rate increases’

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Will States Be Able To Implement Health Insurance Plan Reform?

Monday, August 16th, 2010

health insurance plan reform

Image: tomcensani under CC 3.0

Although healthcare reform will result in more federal involvement in regulations, the majority of the responsibility for regulating health coverage will still rest with the states.

However, it seems that many state insurance commissioners don’t have the power to do some of the things the Obama administration wants them to. Almost half of the states claim that they don’t have the legal authority to review health insurance plan rate increases, for example.

What are they doing to make sure that they can effectively enforce some of the consumer protection provisions that begin next month? States such as Florida and Texas have little recourse, except for gently encouraging health insurers to modify their contracts in order to comply with federal law. Regulators are planning on new state laws being passed in the next year, or using general laws against deceptive trade practices. It remains to be seen if these tactics will be successful. If they are unable to take the lead, the national government will step in–an unpalatable alternative to many.

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