Texas to require insurers to justify 'unreasonable' premium rate rises

Officials from the Texas Department of Insurance have announced that the Department is about to change its longtime policy of allowing uncontested insurance rate increases of up to 50 percent without interference.

State regulators will require insurance companies to justify "unreasonable" premium rate increases under the new federal health care overhaul, the Austin American-Statesman reported. According to an article in the Statesman, state officials say they have always had that authority but have used it sparingly.

Under the new federal law, insurance companies will be required to justify to federal and state regulators "unreasonable" rate increases before imposing them. Companies also will have to post that information on their websites.  The federal government has yet to define what it regards as "unreasonable."

Insurance companies have argued that rising health care costs have forced their rates to increase.