New guidelines announced by the U.S. Department of Health and Human Services may help benefits consultants choose health insurance plans with greater ease.
Part of the Patient Protection and Affordable Care Act, the guidelines will require health insurers to provide easy-to-comprehend information about health insurance benefits prior to selling policies to groups or individuals. Information will include a thorough explanation of benefits and a glossary of often used health insurance terms, according to the HHS.
At present, some health insurance companies will not provide a full and detailed explanation of benefits until after a policy has been purchased, meaning consumers and businesses may not be aware of all associated costs and coverage limitations before they purchase employee benefits, HHS explains.
This information may help human resource departments when they are pricing policies and also aid benefits consultants in explaining healthcare coverage to employees.
"Workers and their families need clear and understandable information regarding their health coverage," Secretary of Labor Hilda L. Solis explained. "Today's proposal is a common-sense step that will help workers quickly and easily compare different coverage options, in order to make more informed decisions."
