New Grants to Protect Consumers

Skyrocketing insurance rates have made health coverage unaffordable for many American families.  But thanks to the Affordable Care Act, the balance of power is shifting from insurance companies back to consumers. This week, Secretary Sebelius announced the availability of $51 million in Health Insurance Premium Review Grants through the Affordable Care Act.  These funds are the first round of grants available to states through a new $250 million grant program to create and strengthen insurance rate review processes.

This announcement comes a month after Secretary Sebelius sent a letter to Governors and State Insurance Commissioners urging them to review the authority they have under their state laws to determine whether they have the tools they need to approve health insurance rates before they take effect.

As the Secretary said, “These new grants will help states protect consumers and small employers by holding insurers accountable for unreasonable insurance rate increases that have made coverage unaffordable for many American families. By strengthening oversight of insurance premiums, these grants will help put affordable coverage back within the reach for Americans who have been hit hard by skyrocketing costs.”