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
(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
(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
(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
(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
(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
(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."
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