HHS Secretary Kathleen Sebelius announced this week that $51million in grant money through the Affordable Care Act is nowavailable to states to strengthen oversight of insurance premiumsand rate hikes.

The money is the first round of grants through a new $250million grant program to create and strengthen insurance ratereview processes. All states and the District of Columbia areeligible for this first round of grants, according to HHS.

"This is an important step in putting consumers back in controlof their health care," Sebelius said in a press statement. "Thesenew grants will help states protect consumers and small employersby holding insurers accountable for unreasonable insurance rateincreases that have made coverage unaffordable for many Americanfamilies. By strengthening oversight of insurance premiums, thesegrants will help put affordable coverage back within the reach forAmericans who have been hit hard by skyrocketing costs."

According to HHS, to receive a grant, a state must submit a planfor how it will use grant funds to develop or enhance its processof reviewing and approving, disapproving, or modifying healthinsurance premium requests. States with successful applicationswill receive a $1 million grant during the first round.

"These funds will help states strengthen their oversightcapabilities and will allow states that do not currently reviewrates to establish a program," said Jay Angoff, Director of theOffice of Consumer Information and Insurance Oversight. "Bysubjecting rates to new public scrutiny, the oversight of premiumincreases will ultimately help ensure that consumers receivesubstantial value for their insurance dollars."

HHS will take applications for a second round of state grantsbeginning in Fiscal Year 2011, after new regulations regarding ratereview take effect.