Pages

Thursday, March 8, 2012

New Regulations Require Easy-To-Understand Summaries Of Health Coverage.

The Obama Administration issued regulations Thursday "requiring health plans to describe what they cover in clear, standardized language that is understandable to consumers," the Los Angeles Times Share to FacebookShare to Twitter (2/10, Levey) reports. The regulations are part of the Administration's effort to "implement a much-anticipated consumer protection in the new healthcare law." Beginning in the fall, "insurers and employers that offer health coverage will have to provide a six-page form that summarizes basic plan information, such as deductibles and co-pays, as well as costs for using in-network and out-of-network medical services."
        Bloomberg News Share to FacebookShare to Twitter (2/10, Armstrong) reports that "the form currently provides examples on how much it might cost a patient to get treated for Type 2 diabetes, as well as a normal delivery of a baby." However, "the final draft removed a section providing an example on how much it would cost a patient to be treated for breast cancer, bowing to arguments made by the lobby group America's Health Insurance Plans that the condition was too complex to be easily summarized."
        The Wall Street Journal Share to FacebookShare to Twitter (2/10, Radnofsky, Subscription Publication) reports that the deadline for insurance companies to produce the documents and make them available to consumers is Sept. 23. The Journal also adds that while employers and insurance providers say the requirement may be expensive and could lead to confusion, it is popular with consumers. Given the pre-election deadline and the popularity of the provision, the Journal notes that Democratic candidates may tout it on the campaign trail.
        CQ Share to FacebookShare to Twitter (2/10, Bunis, Subscription Publication) reports, "On a conference call with reporters Thursday, Steve Larsen, head of the Office of Consumer Information and Insurance Oversight, said that the new effective date would still be in time for most consumers to review the summaries before they had to make decisions about their health insurance for 2013 and that there would be enough time to get the materials ready."
        The AP Share to FacebookShare to Twitter (2/10, Alonso-Zaldivar) quotes Medicare chief Marilyn Tavenner, who said, "If an insurance plan offers substandard coverage in some area, they won't be able to hide it in dozens of pages of text." The piece notes that "one shortcoming is that the summaries won't include premiums" because "administration officials said they ran into logistical problems trying to do that," although "premiums should be easily available anyway, either from their employer or directly from a health plan."
        Modern Healthcare Share to FacebookShare to Twitter (2/10, Daly, Subscription Publication) reports, "The disclosure requirements, mandated by the Patient Protection and Affordable Care Act, aim to simplify consumer comparisons of various insurance plans, which have used marketing materials to sometimes obfuscate their details, according to HHS officials." Modern Healthcare also points out that during "a call with reporters," Tavenner said, "Markets work best when people have the information they need to make informed decisions."

No comments:

Post a Comment