Insurance Companies and Employers Provide New Summary of Benefits and Coverage

To comply with requirements found in the Affordable Care Act, insurance companies and employers are now providing consumers in the private health insurance market with a brief summary of insurance policy or employer plan coverage, according to the Department of Health and Human Services.

Called the Summary of Benefits and Coverage (SBC), the document includes information about covered health benefits, out-of-pocket costs, and the provider network. The SBC also includes a comparison tool, which is modeled on the Nutrition Facts label required for packaged food. This tool helps consumers compare coverage options by showing a standardized sample of what a health plan will cover for two common medical situations—having a baby and managing type 2 diabetes.

In addition to the SBC, consumers will have access to a uniform glossary that defines insurance and medical terms using common language.