People in the market for health insurance will soon have clear, understandable and straightforward information on what health plans will cover, what limitations or conditions will apply, and what they will pay for services, thanks to the Patient Protection and Affordable Care Act according to final regulations published last week.
The marketing materials that insurers use can sometimes make it difficult for consumers to understand exactly what they are buying. The new rules, published jointly by the Departments of Health and Human Services, Labor and Treasury, require health insurers and group health plans to provide concise and comprehensible information about health plan benefits and coverage to the millions of Americans with private health coverage. The new rules will also make it easier for people and employers to directly compare one plan to another.
“All consumers, for the first time, will really be able to clearly comprehend the sometimes confusing language insurance plans often use in marketing,” said HHS Secretary Kathleen Sebelius. “This will give them a new edge in deciding which plan will best suit their needs and those of their families or employees.”
Under the rule announced last week, health insurers must provide consumers with clear, consistent and comparable summary information about their health plan benefits and coverage. The new explanations, which will be available beginning, or soon after, Sept. 23, 2012, will be a critical resource for the roughly 150 million Americans with private health insurance today.
Specifically, these rules will ensure consumers have access to two key documents that will help them understand and evaluate their health insurance choices:
All health plans and insurers will provide a summary of benefits to shoppers and enrollees at important points in the enrollment process, such as upon application and at renewal.
A key feature of the summary of benefits and coverage notices is a new, standardized plan comparison tool called “coverage examples,” similar to the nutrition facts label required for packaged foods. The coverage examples will illustrate sample medical situations and describe how much coverage the plan would provide in an event such as having a baby or managing Type II diabetes. These examples will help consumers understand and compare what they would have to pay under each plan they are considering.
The rules finalize the proposed rules issued in August 2011. Input was received from such stakeholders as the National Association of Insurance Commissioners and a working group composed of health insurance-related consumer advocacy organizations, health insurers, health care professionals, patient advocates including those representing people with limited English proficiency, and others. The final rules aim to ensure strong consumer information while minimizing paperwork and cost.
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