Health Reform to Require Insurers to
Use Plain Language in Describing Health Plan Benefits, Coverage

People in the market for health insurance will soon have clear, understandable and straightforward information on what health plans will cover, what limitations or conditions will apply, and what they will pay for services thanks to the Affordable Care Act – the health reform law – according to final regulations published today.

The new rules, published jointly by the Departments of Health and Human Services, Labor and Treasury require health insurers to eliminate technical or confusing language from their marketing materials that sometimes make it difficult for consumers to understand exactly what they are buying. The new rules will also make it easier for people and employers to directly compare one plan to another.

“Consumers, for the first time, will really be able to clearly comprehend the sometimes confusing language insurance plans often use in marketing,” said HHS Secretary Kathleen Sebelius. “This will give them a new edge in deciding which plan will best suit their needs and those of their families or employees.”

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 ( or “SBC”); and
• A uniform glossary of terms commonly used in health insurance coverage, such as “deductible” and “co-payment.”

Today’s rules finalize the proposed rules issued in August 2011. Input was received from such stakeholders as the National Association of Insurance Commissioners (NAIC) and a working group composed of health insurance-related consumer advocacy organizations, health insurers, health care professionals, patient advocates including those representing people with limited English proficiency, and others. The final rules aim to ensure strong consumer information while minimizing paperwork and cost.

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:
https://s3.amazonaws.com/public-inspection.federalregister.gov/2012-03228.pdf

Other technical information is available at:
http://cciio.cms.gov/resources/other/index.html#sbcug

Click here to read the entire HHS press release:
http://www.hhs.gov/news/press/2012pres/02/20120209a.html

For more information on the rules announced today, visit:
http://www.healthcare.gov/news/factsheets/2011/08/labels08172011a.html