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

Mesirow acquires part of flexPATH in second retirement deal of 2026
Mesirow acquires part of flexPATH in second retirement deal of 2026

Chicago-based Mesirow Fiduciary Solutions adds flexPATH's plan-level outsourced fiduciary book, boosting its retirement market reach to $164 billion.

Advisor moves: LPL lands $350M veteran advisor duo in Florida
Advisor moves: LPL lands $350M veteran advisor duo in Florida

Also, Raymond James's employee advisor channel adds breakaways from Wells Fargo and Stifel, while UBS welcomes an ex-Morgan Stanley duo in Indiana.

SEC accuses crypto firm founder of running $425 million Ponzi scheme
SEC accuses crypto firm founder of running $425 million Ponzi scheme

It promised guaranteed principal and 10% monthly returns. The SEC says it invested nothing.

MassMutual Ascend tops $2 billion in RIA annuity sales as advisors warm to income products
MassMutual Ascend tops $2 billion in RIA annuity sales as advisors warm to income products

Ten years after entering the fee-based annuity market, MassMutual Ascend says nearly half its lifetime sales came in the past two years alone – but barriers remain among fee-only advisors.

Fintech bytes: Wealth tech firms target advisor productivity with new integrations
Fintech bytes: Wealth tech firms target advisor productivity with new integrations

Amplify, WealthReach, Zeplyn and Zocks have unveiled partnerships aimed at automating portfolio management, content creation, account opening, and client communication.

SPONSORED Direct indexing webinar targets tax-loss harvesting amid market swings

Northern Trust’s Ken Lassner shows advisors how to convert volatility into after-tax portfolio gains

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