HHS Issues Proposed Rule on Insurance Comparison Tool - August 24, 2011

On Aug. 17, the U.S. Department of Health and Human Services (HHS), along with the U.S. Departments of Labor and Treasury, released a proposed rule, as authorized under the Affordable Care Act, designed to help consumers comparison shop between health insurance plans. Based on feedback from a number of stakeholders, including the National Association of Insurance Commissioners, the rule would require insurers to provide standardized information in the form of a clear Summary of Benefits beginning in 2012. The Summary of Benefits will allow consumers to compare plans using a tool known as “coverage examples,” which HHS says will work similarly to the “Nutrition Facts” included on food products. In addition, insurers would be required to include glossary of commonly used terms, such as “deductible” and “co-pay.” The agencies provided templates of these documents in a companion release. Comments are due by Oct. 21, 2011.