Based on a review of 35 major health plan websites, most issuers are still struggling to provide the Summary of Benefits and Coverage (SBC), even while the SBC provision of the Patient Protection and Affordable Care Act (PPACA) law took effect last week, according to Tyrula LLC. The law requires insurers to provide a paper SBC document within seven days of application, renewal, or the first day of coverage.
"It's not surprising that a high percentage of health plans have not made their SBCs available online,” said Manu Uppal, CEO and co-founder of Tyrula. “Creating SBCs is not an easy task. An AHIP study from last year predicted $194 million in annual ongoing operating costs for all insurance plans to comply with the SBC regulation. Many companies may have taken a 'wait-and-see' approach and are planning to be compliant by October 2013."
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