Consumer Protection and Rate Review Act of 2013

Summary:  Consumer Protection and Rate Review Act of 2013 - Requires each state insurance commissioner to investigate and take appropriate actions on cases of inadequate notices of cancellations or conversions of health insurance coverage in the individual market that take effect on or after January 1, 2014. Requires that such a notice be treated as inadequate if it fails to: (1) contain information on obtaining health insurance coverage through an American Health Benefit Exchange under the Patient Protection and Affordable Care Act (PPACA), on the possible availability of assistance under PPACA towards payment of the premiums and cost-sharing for such coverage, and on the improved benefits for coverage through an Exchange, compared to coverage not offered through an Exchange; (2) be transparent by inappropriately steering individuals to more expensive plans provided by the cancelling issuer; or (3) otherwise comply with requirements of law. Amends the Public Health Service Act to declare that federal requirements that the Secretary of Health and Human Services (HHS) review unreasonable premium increases in health care coverage shall not be construed to prohibit a state from imposing additional rate requirements on health insurance issuers that are more protective of consumers. Expands such review to include all rate increases, not only premium increases. Directs the Secretary or the relevant state insurance commissioner (or state regulator) to take corrective actions to ensure that any excessive, unjustified, or unfairly discriminatory rates are corrected before, or as soon as possible after, implementation, including through mechanisms such as denying rates, modifying rates, or requiring rebates to consumers. Authorizes civil monetary penalties and ineligibility as a qualified health plan for failing to comply with any corrective action taken by the Secretary. Requires the Secretary to determine whether the state insurance commissioner or regulator or the Secretary will undertake such corrective actions based on whether the state can adequately undertake such actions.  Applies this Act to health plans grandfathered under PPACA.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Consumer Protection and Rate Review 
Act of 2013''.

SEC. 2. REQUIRING STATE INSURANCE COMMISSIONERS TO INVESTIGATE 
              INSTANCES OF INADEQUATE NOTICES OF CANCELLATION OR 
              CONVERSION OF INDIVIDUAL HEALTH INSURANCE POLICIES.

    (a) In General.--Each State insurance commissioner shall 
investigate and take appropriate administrative or other actions (such 
as the imposition of a fine) on cases of inadequate notices of 
cancellations or conversions of health insurance coverage in the 
individual market that take effect on or after January 1, 2014.
    (b) Inadequate Notice.--In this section, a notice of the 
cancellation or conversion of individual health insurance coverage 
shall be treated as inadequate if the notice--
            (1) fails to contain information--
                    (A) on obtaining health insurance coverage through 
                an Exchange under the Patient Protection and Affordable 
                Care Act;
                    (B) on the possible availability of assistance 
                under such Act towards payment of the premiums and 
                cost-sharing for such coverage; and
                    (C) on the improved benefits for coverage through 
                an Exchange, compared to health insurance coverage not 
                offered through an Exchange;
            (2) fails to be transparent by inappropriately steering 
        individuals to more expensive plans provided by the cancelling 
        issuer; or
            (3) fails to otherwise comply with requirements of law.
    (c) Reports.--
            (1) State commissioners to hhs.--Not later than March 31, 
        2014, each State insurance commissioner shall submit to the 
        Secretary of Health and Human Services a report on the 
        investigations and actions described in subsection (a).
            (2) HHS report to congress.--Not later than April 30, 2014, 
        the Secretary shall submit to Congress a report on such 
        investigations and actions.
    (d) Definitions of State, Health Insurance Coverage, and Individual 
Market.--In this section, the terms ``State'', ``health insurance 
coverage'', and ``individual market'' have the meanings given such 
terms for purposes of title I of the Patient Protection and Affordable 
Care Act.

SEC. 3. PROTECTION OF CONSUMERS FROM EXCESSIVE, UNJUSTIFIED, OR 
              UNFAIRLY DISCRIMINATORY RATES [FROM H.R. 1019].

    (a) Protection From Excessive, Unjustified, or Unfairly 
Discriminatory Rates.--The first section 2794 of the Public Health 
Service Act (42 U.S.C. 300gg-94), as added by section 1003 of the 
Patient Protection and Affordable Care Act (Public Law 111-148), is 
amended by adding at the end the following new subsection:
    ``(e) Protection From Excessive, Unjustified, or Unfairly 
Discriminatory Rates.--
            ``(1) Authority of states.--Nothing in this section shall 
        be construed to prohibit a State from imposing requirements 
        (including requirements relating to rate review standards and 
        procedures and information reporting) on health insurance 
        issuers with respect to rates that are in addition to the 
        requirements of this section and are more protective of 
        consumers than such requirements.
            ``(2) Consultation in rate review process.--In carrying out 
        this section, the Secretary shall consult with the National 
        Association of Insurance Commissioners and consumer groups.
            ``(3) Determination of who conducts reviews for each 
        state.--The Secretary shall determine, after the date of 
        enactment of this section and periodically thereafter, the 
        following:
                    ``(A) In which markets in each State the State 
                insurance commissioner or relevant State regulator 
                shall undertake the corrective actions under paragraph 
                (4), as a condition of the State receiving the grant in 
                subsection (c), based on the Secretary's determination 
                that the State regulator is adequately undertaking and 
                utilizing such actions in that market.
                    ``(B) In which markets in each State the Secretary 
                shall undertake the corrective actions under paragraph 
                (4), in cooperation with the relevant State insurance 
                commissioner or State regulator, based on the 
                Secretary's determination that the State is not 
                adequately undertaking and utilizing such actions in 
                that market.
            ``(4) Corrective action for excessive, unjustified, or 
        unfairly discriminatory rates.--In accordance with the process 
        established under this section, the Secretary or the relevant 
        State insurance commissioner or State regulator shall take 
        corrective actions to ensure that any excessive, unjustified, 
        or unfairly discriminatory rates are corrected prior to 
        implementation, or as soon as possible thereafter, through 
        mechanisms such as--
                    ``(A) denying rates;
                    ``(B) modifying rates; or
                    ``(C) requiring rebates to consumers.
            ``(5) Noncompliance.--Failure to comply with any corrective 
        action taken by the Secretary under this subsection may result 
        in the application of civil monetary penalties and, if the 
        Secretary determines appropriate, make the plan involved 
        ineligible for classification as a Qualified Health Plan.''.
    (b) Clarification of Regulatory Authority.--Such section is further 
amended--
            (1) in subsection (a)--
                    (A) in the heading, by striking ``Premium'' and 
                inserting ``Rate'';
                    (B) in paragraph (1), by striking ``unreasonable 
                increases in premiums'' and inserting ``potentially 
                excessive, unjustified, or unfairly discriminatory 
                rates, including premiums,''; and
                    (C) in paragraph (2)--
                            (i) by striking ``an unreasonable premium 
                        increase'' and inserting ``a potentially 
                        excessive, unjustified, or unfairly 
                        discriminatory rate'';
                            (ii) by striking ``the increase'' and 
                        inserting ``the rate''; and
                            (iii) by striking ``such increases'' and 
                        inserting ``such rates'';
            (2) in subsection (b)--
                    (A) by striking ``premium increases'' each place it 
                appears and inserting ``rates''; and
                    (B) in paragraph (2)(B), by striking ``premium'' 
                and inserting ``rate''; and
            (3) in subsection (c)(1)--
                    (A) in the heading, by striking ``Premium'' and 
                inserting ``Rate'';
                    (B) by inserting ``that satisfy the condition under 
                subsection (e)(3)(A)'' after ``award grants to 
                States''; and
                    (C) in subparagraph (A), by striking ``premium 
                increases'' and inserting ``rates''.
    (c) Conforming Amendment.--Title XXVII of the Public Health Service 
Act (42 U.S.C. 300gg et seq.) is amended--
            (1) in section 2723 (42 U.S.C. 300gg-22), as redesignated 
        by the Patient Protection and Affordable Care Act--
                    (A) in subsection (a)--
                            (i) in paragraph (1), by inserting ``and 
                        section 2794'' after ``this part''; and
                            (ii) in paragraph (2), by inserting ``or 
                        section 2794'' after ``this part''; and
                    (B) in subsection (b)--
                            (i) in paragraph (1), by inserting ``and 
                        section 2794'' after ``this part''; and
                            (ii) in paragraph (2)--
                                    (I) in subparagraph (A), by 
                                inserting ``or section 2794 that is'' 
                                after ``this part''; and
                                    (II) in subparagraph (C)(ii), by 
                                inserting ``or section 2794'' after 
                                ``this part''; and
            (2) in section 2761 (42 U.S.C. 300gg-61)--
                    (A) in subsection (a)--
                            (i) in paragraph (1), by inserting ``and 
                        section 2794'' after ``this part''; and
                            (ii) in paragraph (2)--
                                    (I) by inserting ``or section 
                                2794'' after ``set forth in this 
                                part''; and
                                    (II) by inserting ``and section 
                                2794'' after ``the requirements of this 
                                part''; and
                    (B) in subsection (b)--
                            (i) by inserting ``and section 2794'' after 
                        ``this part''; and
                            (ii) by inserting ``and section 2794'' 
                        after ``part A''.
    (d) Applicability to Grandfathered Plans.--Section 1251(a)(4)(A) of 
the Patient Protection and Affordable Care Act (Public Law 111-148), as 
added by section 2301 of the Health Care and Education Reconciliation 
Act of 2010 (Public Law 111-152), is amended by adding at the end the 
following:
                            ``(v) Section 2794 (relating to 
                        reasonableness of rates with respect to health 
                        insurance coverage).''.
    (e) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out this section, such sums as may be necessary.
    (f) Effective Date.--The amendments made by this section shall take 
effect on the date of enactment of this Act and shall be implemented 
with respect to health plans beginning not later than January 1, 2014.