Health Insurance Funds Granted to 45 States to Protect Premium Increases

Posted in Health Insurance

August 18th, 2010

To get a handle on insurance company abuses, the government has issued grants that will hold these companies accountable for any unjustified premium increases. These grants have been issued to most states so far, and as hoped by Congress, will help protect consumers and give them fair treatment when acquiring health insurance.

How the Grants Benefit States

One of the original versions of the health care reform law would have given full rate review authority to states; however, this provision was excluded from the final version of the bill. To make up for this exclusion, lawmakers included in the reforms more than $250 million in grants that would let states closely review proposed increases in insurance rates.

The first round of grants, $1 million per state, was handed out on Monday to 45 states and the District of Columbia. The states that have so far not applied for funding are Alaska, Georgia, Iowa, Minnesota and Wyoming.

How the Grants Benefit You and How to Find Affordable Coverage

Of course, you may not see an immediate change in the way the health insurance process is handled, but the idea of offering the grants to states is to find ways of opening dialogue and allowing for states to have a voice when it comes to premium increases.

Secretary of Health and Human Services, Kathleen Sebelius, said that health insurance should eventually become more affordable as a result of careful use of the grants. However, if you’re looking for ways to find affordable health insurance now, here are a few ideas:

• Shop around: One of the best ways to find affordable health insurance is to shop around for coverage until you find what works for you.
• Find a health insurance exchange: While health insurance exchanges are not required by law until 2014, some states are offering their own exchanges now that offer access to affordable coverage.
• Get a job with benefits: While there aren’t as many around as in the past, look for an employer that is offering quality health insurance benefits to help reduce the price some.
• Live a healthier lifestyle: The healthier your lifestyle is, the less you will need to make visits to the doctor or emergency room, which require you to pay co-insurance, a co-pay or a deductible.

Hopefully, the grants will be able to provide states with the authority they need to keep health insurance rates affordable. But until then, it’s good to know that there are some options out there to find affordable rates on your own.