Fred C Church

The U.S. Departments of Health and Human Services, Labor and the Treasury recently published final regulations governing the language used in health insurance plan documents. The rules are attempting to simplify it so that Americans can more easily understand their coverage, whether it is individual or through a business insurance policy's employee benefits package.

This should make it easier for consumers and employers to compare health plans, according to HHS. Revised explanations must be completed and made available beginning on September 23 of this year, in the form of a clear summary.

The Summary of Benefits and Coverage (SBC) will vary between plans. Insurance providers are also required to supply a glossary of insurance terms, such as co-payment and deductible. This may be the same for different insurers.

The SBC will include coverage examples, scenarios meant to clarify when a policy applies by providing descriptions of potential situations and the plan's effects in those circumstances. In addition to protecting consumers, this rule is meant to minimize necessary paperwork and expenses. If successful, it might also ease Health and Human Services insurance analysis, allowing healthcare professionals to spend less effort determining whether care is covered.