In a letter to the CEOs of UnitedHealth Group Inc., WellPoint Inc.,
Aetna Inc., Health Care Service Corporation and CIGNA HealthCare Inc.,
U.S. Department of Health and Human Services (HHS) Secretary Kathleen
Sebelius called on the executives to publicly justify proposed health
insurance premium increases. Sebelius’ letter comes after a meeting last
week with these executives at the White House.
“incumbent
carriers seem more willing than ever to walk away from existing
business.”
“Last Thursday, I asked CEOs to post online the actuarial justification
for premium hikes so consumers can see why their premiums are
skyrocketing. Now, it’s time for these insurance company CEOs to do
their part to make the system more transparent for the American people.
If insurance companies are going to raise rates, the least they can do
is tell us why.”
The letter comes shortly after a new analysis from Goldman Sachs found
that competition in the insurance market is so weak, insurance companies
can continue to raise rates even if it means losing customers. The
analysis found that “price competition is down” and that “incumbent
carriers seem more willing than ever to walk away from existing
business.”
Millions were booted from Medicaid. The insurers that run it gained Medicaid revenue anyway.