Clear, Common-Sense Explanations of Insurance Policy Benefits Will Make Consumers Better Shoppers

Today, the Centers for Medicare and Medicaid Services, the Department of Labor, and the Department of Treasury released a rule requiring insurers to use a short, uniform form to explain benefits covered by health insurance plans. The following is the statement of Ron Pollack, Executive Director of Families USA, regarding this rule:

“The new uniform explanation of benefits rule is a triumph of common sense. With a clear, short, consumer-friendly form—in place across the country—that explains what benefits are covered in health insurance plans, consumers will be able to truly compare plans and make educated choices.

“In the past, explanations of benefits have often been long, confusing, and written in legal gobbledygook that no one could understand. Deciphering basic information about health insurance plan benefits could be as challenging for consumers as learning a new language—without a good translation dictionary.

“This new rule will help consumers and businesses become more informed and better shoppers. Companies who respect their customers and want to encourage competition in the health insurance marketplace should also applaud the rules—clearly describing a product you are offering for sale should not be perceived as a heavy lift.”

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Families USA is the national organization for health care consumers. It is nonprofit and nonpartisan and advocates for high-quality, affordable health care for all Americans.

1201 New York Avenue NW, Suite 1100 · Washington, DC 20005
202-628-3030 · Email: info@familiesusa.org · www.familiesusa.org