Health Care News

Dear Friends,

We can all agree that saving money is important, including when it comes to our health care coverage. I want to share the good news with you as we continue to see the benefits of the Affordable Care Act, which gives millions of Americans, including hundreds of thousands in the 15th District of Texas, access to affordable, high-quality health care.

The Department of Health and Human Services announced that starting September 1, health insurers seeking to increase their rates by 10 percent or more must submit their request to state or federal reviewers to determine whether the increase is reasonable.

This rate review program was created by the Affordable Care Act and will bring greater transparency, accountability, and, in many cases, lower costs for families and small business owners who struggle to afford coverage.

In many states, federal agencies now have the authority to deny or reduce rate hikes found to be excessive. Insurers with double-digit rate increases are required to justify their actions.

The Affordable Care Act holds companies that have not been reviewed accountable. This mandate brings teeth into the system to ensure their actions that directly affect you are justified, including when rates are increased. This marks the beginning of a new era of health care insurance costs that our American families can afford.

As of September 1, insurers proposing double-digit increases will have to provide clear information that indicates what factors are causing the proposed increases. Reviewers and experts in the field of health insurance will closely examine information about the underlying cost trends in health care to flag instances when insurance companies are unjustly raising costs.

Starting in mid-September, consumers in every state can go to www.HealthCare.govto view easy-to-access, consumer-friendly disclosure information explaining proposed increases that are 10 percent or higher than last year’s rates. Consumers will see a summary of the key factors driving rate increases and an explanation provided by insurance companies for why the proposed increase is needed.

For more information on significant state achievements with rate review, please visit: http://www.healthcare.gov/news/factsheets/ratereview09012011b.html.

As always, it is my honor to represent you in Congress. If I can be of any assistance to you, please do not hesitate to contact our offices in Edinburg, Beeville, or in Washington, D.C.

Sincerely,

Ruben Hinojosa