Arbitrary Rate Review Threshold to Increase Health Costs

“Beginning September 1, 2011, health insurers must
submit requests to state or federal reviewers if they
wish to increase insurance rates by 10 percent or more.
This “rate review” process is required by Section 2794
of the Public Health Service Act (PHSA), which was
added to Section 1003 of the Patient Protection and
Affordable Care Act (PPACA), Pub. L. 111-148…
The goal of this mandate is to reduce health care costs
by addressing the asymmetry of information in the
health insurance market between consumers, providers
and industry actors. However, despite the stated goals
of the mandate, it fails to ultimately address the
underlying issues accelerating health care costs.”