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Government attempting to curb insurance rate hike

Posted On Mon, January 16, 2012

The federal government recently announced its intentions to stop a health insurance company from increasing its rates without giving a reason for the jump in costs.

Trustmark Life Insurance Company raised its health insurance rates, and the increase could affect as many as 10,000 Americans, the report noted. The consumers are located in Arizona, Alabama, Wyoming, Pennsylvania and Virginia. The forcing of insurers to reveal  rate hikes is due to the healthcare reform, which is gradually being implemented.

"Before the Affordable Care Act, consumers were in the dark about their health insurance premiums because there was no nationwide transparency or accountability," said Kathleen Sebelius, secretary of the U.S. Department of Health and Human Services.  "Now, insurance companies are required to disclose rate increases over 10 percent and justify these increases."

In addition to the federal government, states are given these abilities to question rate increases, and this has already occurred in some states, the report added.

Consumers who are still concerned about the uncertainty of healthcare reform may want to compare health insurance rates, as this may help find the most affordable option.

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