An article on Hamptons.com mentions that New York Governor Paterson recently signed into law Governor’s Program Bill #278 that overhauls how health insurance rate increases are approved in the state. For the past decade, New York has had a “file and use” law that allowed for industry self-regulation and limited the state’s ability to disapprove health insurance premium increases.

When it comes to setting the health insurance rate of a particular plan, most states require insurance providers to submit rate increase proposals and then the state will approve or disapprove the rate increase. However, in the case of a state such as New York, the health care industry was pretty much on their own to determine rates, which sometimes lead to rates increases that were not manageable.

The new law gives the New York Insurance Department the authority to review rate increases to ensure they are warranted. The state could then approve, modify or disallow the rate increase request, which, in theory, will help maintain lower health care premiums for those living in New York.

Another important piece of the new legislation that goes into effect 1 October, is to require health insurance providers to spend at lease 82 percent of premiums collected from policy premiums to pay for health claims. This means that more of the money spent by businesses and consumers for health insurance premiums will be returned to them as benefits being paid by their policies.

Health insurance coverage is something that everyone needs the ability to afford. If you are looking for a medical plan, it is very easy to compare health insurance plan rates online, and even purchase the coverage you need. You can get free health insurance quotes from leading providers, all from the comforts of your computer desk. Whether you live in New York, or one of the other states, go online to find the medical coverage you need.

Related posts:

1. Family Health Insurance Plan
2. Compare Health Insurance Plans
3. Cheap Health Insurance Plan Rate
4. Health Insurance – 3 Things to Consider
5. How to Choose a Health Insurance Plan