CMS developing quality-reporting system for exchange plans

The CMS is seeking input as it establishes a system to rate the quality of the new health plans sold in the state and federal insurance exchanges.

The request comes as the Obama administration seeks to quell the furor over cancellation notices that millions of Americans are receiving because their health plans are deemed too shoddy to meet the healthcare reform law's coverage requirements.

However, the new quality initiative is not related to that backlash. The Patient Protection and Affordable Care Act mandated that HHS develop a number of reporting requirements to ensure quality healthcare coverage is offered in the exchanges. These include ratings for plans' relative quality, price and health outcomes, as well as a survey for assessing enrollee satisfaction.

The request (PDF), which the CMS will publish Tuesday in the Federal Register, also seeks input on ways to ensure the integrity of the rating system. Comments are due by Jan. 20.

Under previously issued regulations, insurance companies already are required to report some quality information to the exchanges in which they are selling plans.

In subsequent rules, the CMS intends to set requirements for insurers and exchanges on the collection and submission of data, along with technical guidance on measure specifications, rating methodology and data reporting and procedures.

As the exchanges mature and enrollment in insurance plans expands, the CMS says it will consider developing a quality rating system applicable to specific offerings, such as standalone dental plans, catastrophic plans and health saving accounts, according to the notice.

Follow Virgil Dickson on Twitter: @MHvdickson