HHS Secretary Kathleen Sebelius announced this week that $51 million in grant money through the Affordable Care Act is now available to states to strengthen oversight of insurance premiums and rate hikes.
The money is the first round of grants through a new $250 million grant program to create and strengthen insurance rate review processes. All states and the District of Columbia are eligible for this first round of grants, according to HHS.
"This is an important step in putting consumers back in control of their health care," Sebelius said in a press statement. "These new grants will help states protect consumers and small employers by holding insurers accountable for unreasonable insurance rate increases that have made coverage unaffordable for many American families. By strengthening oversight of insurance premiums, these grants will help put affordable coverage back within the reach for Americans who have been hit hard by skyrocketing costs."
According to HHS, to receive a grant, a state must submit a plan for how it will use grant funds to develop or enhance its process of reviewing and approving, disapproving, or modifying health insurance premium requests. States with successful applications will receive a $1 million grant during the first round.
"These funds will help states strengthen their oversight capabilities and will allow states that do not currently review rates to establish a program," said Jay Angoff, Director of the Office of Consumer Information and Insurance Oversight. "By subjecting rates to new public scrutiny, the oversight of premium increases will ultimately help ensure that consumers receive substantial value for their insurance dollars."
HHS will take applications for a second round of state grants beginning in Fiscal Year 2011, after new regulations regarding rate review take effect.
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