Snap Fact #226 - ObamaCare Allows For Justifiable Rate Increases!

States are responsible for reviewing health insurance rate increases. But many states don’t closely examine an increase to make sure it is justified.How it works:

• Starting in 2011, insurers must publicly post and justify a rate increase of more than 10% for policies covering individuals or small businesses.

• States will determine whether the increase is unreasonable based on health-care costs and other factors. States can reject rates if their laws give them authority to do so. If states can’t make that determination, the federal government will.

The fine print:

• This applies only to non-grandfathered plans and does not give states or the federal government new authority to reject unreasonable increases.

• Increases below this 10% threshold may not be posted – that will be each state’s decision. And in 2012, the threshold may vary by state.