Institute:Office of National Coordinator (ONC) Workforce Training Curriculum
Component:Introduction to Health Care and Public Health in the U.S.
Unit:Financing Health Care - Part 1
Lecture:Payors in the U.S. Health Care System
Slide content:Regulation of Private Health Insurance States control the legal structure and monitor their finances Ensure the company can meet its obligations Private insurance companies are also regulated by federal laws 21
Slide notes:Private insurance is regulated by both state and federal laws. States regulate commercial health insurers. They control the legal structure of private insurers and monitor their finances to make sure they can meet their obligations to the people they insure. Companies must prove they have enough money to pay all anticipated claims for the year, along with their administrative and operating costs, and they must maintain a certain amount of excess funds or reserves, in case claims exceed projected experience. 21