HHS targets Pennsylvania insurer in first use of rate review power

ADVERTISEMENT

Everence is operated by the Mennonite Church.

The insurance industry has been highly critical of the new rate-review rules, especially HHS’s decision to review all increases of 10 percent or more. The department has said it plans to replace that standard with more state-specific thresholds in the future.

Steve Larsen, the director of HHS’s Center for Consumer Information and Insurance Oversight, told reporters that Everence used data from multiple states to set its rate in Pennsylvania, leading to an increase that would be inappropriate for policies in the state.

An HHS official said the Everence rate is the second double-digit increase HHS has reviewed using its new authority. The other rate was deemed reasonable.