PPACA: Commissioners Not Sure Where to Set Rate Review Trigger

if they appear to be reasonable or unreasonable.

"The NAIC recognizes the value of and supports efforts to enhance market transparency and is very appreciative of HHS' recognition that state-specific thresholds are more appropriate for determining potentially unreasonable rate increases," officials say in the NAIC letter.

Some commissioners think the 10% threshold is too low and would require too many rate reviews, and some think it's too high, officials say.

Some states would like at least 6 more months after a final regulation is promulgated to develop their own, state-specific thresholds, officials say.

"While there is no consensus on when to transition to state-based thresholds, commissioners agree that we should move quickly," officials say. "The proposed regulation does not indicate how the secretary will determine the state-based threshold, but since individual states understand their health insurance markets best, maximum flexibility in determining a threshold amount should be given to the states."

Other coverage of health insurance rate reviews from National Underwriter Life & Health:

• CCIO Plows Ahead on Rate Review Process, CO-OPs
• AHIP Opposes HHS Trigger for Review of Rate Hike Requests
• HHS to Provide States With Funds to Review High Health Rate Hikes
• New York Quantifies Effect of Federal Health Law Changes
• CMS Unveils 2012 Medicare Advantage Payment Proposal