U.S. Insurers Facing Tighter Oversight of Medicaid Plans

In the first major overhaul in more than a decade, the U.S. has proposed new rules for private health insurers who run Medicaid and children’s health plans covering millions of people.

The proposed rules, issued Tuesday by the Centers for Medicare & Medicaid Services, call for plans to report what portion of the money they’re paid actually gets spent on health benefits, and say states should take that into account when setting rates. The proposed guidance would also have states set standards for access to doctors and hospitals, and create a ratings system for plans.