Feb 19 2010
U.S. Department of Health and Human Services (HHS) Secretary Kathleen
Sebelius today unveiled a new report, Insurance Companies
Prosper, Families Suffer: Our Broken Health Insurance System. The
report highlights health insurance premium increases in states
across the country and comes shortly after Anthem Blue Cross announced
plans to raise rates on its California customers by as much as 39
percent, even after its parent company took in a profit of $2.7 billion
in the previous quarter. The complete report is available at www.HealthReform.gov.
“It’s time for Congress to pass reform and hand control
over health care decisions back to American families and their doctors.”
“Over the last year, America’s largest insurance companies have
requested premium increases of 56 percent in Michigan, 24 percent in
Connecticut, 23 percent in Maine, 20 percent in Oregon, and 16 percent
in Rhode Island, to name just a few states,” said Sebelius. “Premium
increases have left thousands of families that are already struggling
during the economic downturn with an unpleasant choice between fewer
benefits, higher premiums, or having no insurance at all. Hard-working
families deserve better.”
The report examines requested insurance premium increases and notes:
-
Anthem of Connecticut requested an increase of 24 percent last year,
which was rejected by the state.
-
Anthem in Maine had an 18.5 percent premium increase rejected by the
state last year as being “excessive and unfairly discriminatory” – but
is now requesting a 23 percent increase this year.
-
In 2009 Blue Cross Blue Shield of Michigan requested approval for
premium increases of 56 percent for plans sold on the individual
market.
-
Regency Blue Cross Blue Shield of Oregon requested a 20 percent
premium increase.
-
UnitedHealth, Tufts and Blue Cross requested 13 to 16 percent rate
increases in Rhode Island.
-
Rates for some individual health plans in Washington increased by up
to 40 percent until Washington State imposed stiffer premium
regulations.
Health insurance reform will fix our insurance system, help drive down
costs, put consumer power and choice in the hands of the American
people, and ensure all Americans receive the health care services they
need. Reform will:
-
Place additional oversight on health insurance companies to ensure
that people get value for the premiums they pay. Insurance
companies will have to report how they spend the premium dollars that
they collect from their customers. If they spend too much on
administrative costs and profits, they will have to give some of that
money back to their customers. Insurance companies will also have to
provide public justification for premium increases. Consumers can use
this information to help decide whether they want to purchase a
particular plan. And if insurance companies are not able to justify
their premium increases, they could be barred from participating in
the health insurance exchanges.
-
End Arbitrary Limits Placed on Coverage by Insurance Companies.
Under health insurance reform, families will no longer face lifetime
limits to their benefits, nor will coverage be denied or watered down
based on medical history. As a result, health insurance will provide
real protection from high health care costs.
-
End Insurance Company Discrimination. Health insurance reform
will prevent any insurance company from denying coverage based on
underlying health status, including genetic information. It will end
insurance discrimination that charges families more if a family member
has or had any illness, and limit differences in premiums based on age.
-
Create Competition Among Insurers with a Health Insurance Exchange.
Health insurance reform creates an “exchange” or marketplace for
insurance competition that will drive down premium prices for
Americans. The health insurance exchange will bring families and plans
together into one organized marketplace so families can compare prices
and health plans in order to decide which quality, affordable option
is right for them. Health insurance reform will guarantee every
American a choice of health coverage, even if someone loses a job,
switches jobs, moves, or gets sick.
-
Ensure Value in Our Health Care System. By rewarding
high-quality and efficient care, encouraging care coordination, and
reducing medical errors, health reform will slow the growth in health
care costs and ensure value for every health care dollar spent.
-
Lower Premiums. The Congressional Budget Office estimates that
reform will streamline administrative costs of insurance companies and
bring more people into the insurance market, lowering premiums of a
comparable plan in the individual market by 14 to 20 percent.
That means more money in the pockets of American families, and the
security of having high-quality coverage.
“Premium hikes in California and across the country are a wakeup call,”
added Sebelius. “It’s time for Congress to pass reform and hand control
over health care decisions back to American families and their doctors.”
http://www.hhs.gov/news.