Washington, DC -- Congressman Eliot Engel (D-NY-17) issued the following statement to spotlight that new requirements for health insurers to justify rate increases, which took effect yesterday, designed to protect and control costs for many families and small businesses who are struggling to afford coverage.

“This protection is part of the historic Affordable Care Act, passed in 2010, and will require health insurers, seeking to increase their rates by 10 percent or more, to justify the increase to State or Federal reviewers.  These reviewers will determine if the increase is reasonable.  This review program will bring greater transparency, accountability and keep costs down for families and small businesses.

“I proudly supported of the Affordable Care Act because it helps millions more American men, women and children to better manage their health, and substantially slows the spiraling costs of health coverage.  Without this law, health costs would keep rising and wreak havoc on our economy.  It is unfortunate that the Republican Majority continues to waste the American people’s time by holding repeated votes to repeal or defund this historic law.  Instead of focusing on putting people back to work, they are pursuing an agenda which would worsen health care services for millions of Americans.”

To learn more about the new provisions, consumers can go to www.HealthCare.gov.  Many states have lacked the resources needed to perform strong rate review.  The Affordable Care Act provides $250 million in Health Insurance Premium Review Grants to states over five years. To assist them in carrying out this needed review.

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