On September 1st, federal Health & Human Services (HHS) under the Patient Protection and affordable Care Act (PPACA) moved to significantly tighten oversight of health insurance premiums. Coverage sold to individuals or small groups through an association will be subject to rate review that begins on November 1, 2011.

Health insurers seeking to increase rates by 10% or more must now submit their request to state or federal reviewers to determine whether the increase is reasonable or not. "Experts will closely examine information about the underlying cost trends in healthcare to flag instances when insurance companies are unjustly raising costs. Consumers will no longer have to take the word of their insurance company; they will have an independent expert reviewing their proposed rate increase," HHS officials said.

In mid-September, consumers in every state will be able to go to HealthCare.gov to view easy-to-access, consumer-friendly disclosure information explaining proposed increases that are 10% or higher than last year's rates.

Click here to view the Rate Increase Disclosure and Review: Definitions of "Individual Market" and "Small Group Market."