The Patient Protection and Affordable
Care Act (Pub. L. 111–148) was enacted on March 23, 2010; the
Health Care and Education Reconciliation Act (Pub. L. 111–152) was
enacted on March 30, 2010. In this statement, we refer to the two
statutes collectively as the Affordable Care Act. The Affordable
Care Act reorganizes, amends, and adds to the provisions of Part A
of title XXVII of the Public Health Service Act (PHS Act) relating
to group health plans and health insurance issuers in the group and
individual markets. Section 1003 of the Affordable Care Act adds a
new section 2794 of the PHS Act which directs the Secretary of the
Department of Health and Human Services (the Secretary), in
conjunction with the States, to establish a process for the annual
review of “unreasonable increases in premiums for health insurance
coverage.” Additionally, section 2794 also directs the Secretary,
in conjunction with the States, to monitor all rate increases
effective 2014. The statute provides that this process shall
require health insurance issuers to submit to the Secretary and the
applicable State justifications for unreasonable premium increases
prior to the implementation of the increases. Section 2794 also
directs the Secretary to ensure the public disclosure of
information and justification relating to unreasonable rate
increases.
There is an overall decrease in
burden hours from 41,213 hours to 20,462 hours. As a result of
student health coverage being exempted from Federal rate review
requirements, we expect a total reduction in the annual burden to
issuers of approximately 440 hours. We estimate that states will no
longer submit rate increases for 40 student health insurance plans
to CMS. We estimate a reduction in burden to states of
approximately 40 hours annually. We expect the adoption of URRT
version 5.0 (Part I of the Rate Filing Justification) will reduce
the burden for issuers by 2 hours per submission. The total issuer
burden will decrease by 1,832 hours annually. We expect the number
of written justifications (Part II of the Rate Filing
Justification) to decrease by 125 submissions due to the change in
Federal default review threshold. The issuer burden will decrease
by 187.5 hours annually and the state burden will decrease by
4735.5 hours annually.
$302,316
No
No
No
Yes
No
No
Uncollected
Jamaa Hill 301 492-4190
No
On behalf of this Federal agency, I certify that
the collection of information encompassed by this request complies
with 5 CFR 1320.9 and the related provisions of 5 CFR
1320.8(b)(3).
The following is a summary of the topics, regarding
the proposed collection of information, that the certification
covers:
(i) Why the information is being collected;
(ii) Use of information;
(iii) Burden estimate;
(iv) Nature of response (voluntary, required for a
benefit, or mandatory);
(v) Nature and extent of confidentiality; and
(vi) Need to display currently valid OMB control
number;
If you are unable to certify compliance with any of
these provisions, identify the item by leaving the box unchecked
and explain the reason in the Supporting Statement.
CMS-10379 Supporting Statement OMB-.docx
State Unreasonable Rate Increase Determinations