Recently there was an initiative taken to make group health insurance policies in the U.S. more understandable and simpler for its consumers and employers. This could be done by making the summary of benefits and costs simpler. This new regulation initiated by Medicare aims to do away with confusing and technical language in policies. These changes will help employers and consumers make comparisons of their health plans and understand the benefits of each of them in a simpler manner.
As of now, the changes only affect group commercial insurance policies and not Medicare. Officials were not ready to comment immediately on when Medicare beneficiaries also can have the privilege of having understandable policies like the new ones for commercial plans.
Consumers need to inform in written 60 days prior to any important changes that will be made in a plan, according to Steve Larsen, who heads the Center for Consumer Information and Insurance Oversight with the U.S. Department of Health and Human Services. These changes should help consumers during annual fall open enrollment periods according to him. Insurers who fail to adhere to the new rules have to face penalties of as much as $1,000 for each person enrolled in the plan.
For more information please visit us @ www.medigap4seniors.com, or call us at 888-502-5553 to speak with one of our Medicare experts.