Insurer rate hikes to get fresh federal scrutiny

Health insurers will have to justify rate increases at or above 10 percent starting next year under a new proposed rule from the Department of Health and Human Services.

The federal government will not have the authority to reject the rate increases. But an HHS official says it will help states review premium hikes and then highlight any deemed unreasonable. Insurers will then be asked to submit a final justification for them.

This rule only affects policies sold in the individual and small group markets. Steep hikes in those markets have been a hot topic since early this year, when reports of Anthem Blue Cross rates rising as much as 39 percent in California helped reignite stalled health care overhaul legislation. The insurer later withdrew the increase.