Health Law Requires Insurers to Use Plain Language in Describing Benefits, Coverage
|Federal Information & News Dispatch, Inc.|
"This commonsense rule ensures that consumers will be better equipped to choose a plan that better fits them and their family," Owens said. "Simplifying this information will ensure the purchase of appropriate coverage and provide peace of mind to
Specifically, these rules will ensure consumers have access to two key documents that will help them understand and evaluate their health insurance choices:
* A short, easy-to-understand Summary of Benefits and Coverage (SBC)
* A uniform glossary of terms commonly used in health insurance coverage, such as "deductible" and "co-payment."
All health plans and insurers will provide an SBC to shoppers and enrollees at important points in the enrollment process, such upon application and at renewal. In the past, health insurers would only provide selective details on a policy before it was purchased.
"Health care reform has already saved seniors in
A key feature of the SBC is a new, standardized plan comparison tool called "coverage examples," similar to the Nutrition Facts label required for packaged foods. The coverage examples will illustrate sample medical situations and describe how much coverage the plan would provide in an event such as having a baby or managing Type II diabetes. These examples will help consumers understand and compare what they would have to pay under each plan they are considering.
To view the template for the summary of benefits and coverage, visit: http://cciio.cms.gov/programs/consumer/summaryandglossary/index.html
To view the Final Rule, visit: http://www.ofr.gov/OFRUpload/OFRData/2012-03230_PI.pdf
Other technical information is available at: http://cciio.cms.gov/
Read this original document at: http://owens.house.gov/News/DocumentSingle.aspx?DocumentID=280464
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