Vermont Receives $1 Million Health & Human Services Grant

Vermont Receives $1 Million Health & Human Services Grant

Funds to improve health insurance rate review and regulation

Vermont has been awarded a $1 million grant by the Department of Health & Human Services (HHS) as part of the Affordable Care Act, which requires the Secretary of HHS, in conjunction with the States, to establish a process for the annual review of health insurance premiums to protect consumers from unreasonable, unjustified, and/or excessive rate increases.

The Vermont Department of Banking, Insurance, Securities & Health Care Administration (BISHCA) will administer the grant. Per the terms of the grant, BISHCA has through September 20, 2011 to implement grant-funded projects that will further enhance its rate review process. The overall objective of all grant-funded work is to better offer Vermonters consistent, comprehensive, and effective regulation of health insurance rates in the state.

Key projects to be undertaken by the Department during the grant period include:

1. Review of large group rates, and rate review of minor lines of health insurance, such as student blanket policies.
2. Development of rate filing standards, and collection of informational data for plans administered by Third Party Administrators.
3. Verification of claims experience and analysis of public program mitigation.
4. Upgrades to Vermont’s IT capacity.
5. Provide consumers with access to summaries of rate increase requests via the Department’s website that will include a ratepayer comment capability.

“This grant provides BISHCA with additional resources to enhance our already robust rate review process in order to ensure premium increase requests from carriers are minimized, and Vermonters pay only for increases that are absolutely necessary,” said Christine Oliver, BISHCA's Deputy Commissioner of Health Care Administration.

Upon completion of the current grant period, Vermont will have the opportunity to apply for additional health care reform funding through HHS. Those funds will also be directed toward improving health insurance premium review and regulation.

BISHCA’s grant application can be found below.