Why health insurance is now like a box of Wheaties

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.