Why health insurance is now like a box of Wheaties

Why health insurance is now like a box of Wheaties
Truth-in-labeling law comes to medical insurance biz; 'plain English'
MAY 17, 2011
Health insurers will have to provide descriptive labels similar to those found on food products under a consumer-information provision in the 2010 health overhaul the U.S. began rolling out today. The draft rules will make insurers such as Indianapolis- based WellPoint Inc. (WLP), the largest U.S. health insurer by enrollment, detail coverage costs, deductibles and payments for common services, including delivering a baby. “Many consumers don't have easy access to information in plain English to help them understand the differences in the coverage and benefits provided by different health plans,” said Kathleen Sebelius, the U.S. Secretary of Health and Human Services. The rules change that, she said. Sebelius's department is implementing the 2010 law that calls for labeling similar to that used by food companies. The Congressional Budget Office estimated will let 23 million uninsured people buy health coverage from private plans by 2017. Consumer protections in the health-care law are designed to force insurers to compete based on price and service and not exclude sicker, more costly patients, Sebelius has said. The rules were announced in a statement today from the Health and Human Services Department in Washington. WellPoint was reviewing the rules and deferred immediate comment to America's Health Insurance Plans, the industry's Washington-based lobby group, said Kristin Binns, a spokeswoman for the company. Robert Zirkelbach, a spokesman for the trade group, said the group is reviewing the regulations.

Latest News

Advisors still have questions on Trump Accounts ahead of July 4 launch
Advisors still have questions on Trump Accounts ahead of July 4 launch

Financial planning leaders say unresolved rules on fees, Roth conversions and financial aid complicate comparisons with 529 plans.

Trust at Scale: How AI Personalization Rewires Business for Growth
Trust at Scale: How AI Personalization Rewires Business for Growth

AI can personalize at scale, but without trust, it falls flat.

Advisor moves: Succession planning, fresh starts trigger exits at Osaic and LPL
Advisor moves: Succession planning, fresh starts trigger exits at Osaic and LPL

Teams head for W-2 independence models with practices totaling almost $1B.

Empower strikes $340m deal to take on Milliman's retirement book
Empower strikes $340m deal to take on Milliman's retirement book

Acquisition adds 400 defined benefit plans and 1.5 million participants, pushing Empower deeper into workplace benefits.

EP Wealth lands fifth deal of 2026 in Silicon Valley
EP Wealth lands fifth deal of 2026 in Silicon Valley

Menlo Park firm brings $900m in AUM and specialist expertise serving Apple and Google employees.

SPONSORED Who builds the income when the pension disappears?

Dan Biagini of American Equity says the steady decline of pensions, longer lifespans and a reset in interest rates are rewriting how advisors build retirement income

SPONSORED Why direct indexing stopped being optional

Direct indexing is on pace to outgrow ETFs and mutual funds. Northern Trust's Ken Lassner explains why the advisors who get it wish they had started sooner.