HHS oversight could force tighter limits on premiums
The Patient Protection and Affordable Care Act provides inroads for federal oversight of "unreasonable" increases in premiums in Section 2794.
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It also is too early to tell how, if at all, Section 2794 will impact the end game for increases in premiums. Whether public disclosure on the Internet will result in muted increases is an open question.
More likely is that any real constraint on increases will come through the states, including changes to state laws that may provide more strict limits on increases. Insurers should stay attuned to governmental activities at the state level in order to ensure an appropriate review process, and stay tuned for further trends as Section 2794 plays out.
Christopher Williams is a partner with Calfee, Halter & Griswold LLP.
Laura McBride is an associate with Calfee, Halter & Griswold LLP.
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