Feinstein Seeks To Block Insurance Rate Increases Across The Nation

Sen. Dianne Feinstein (D-Calif.) said Friday that she plans to introduce legislation that would bar insurance companies from enacting health insurance premium rate increases that the Secretary of the Health and Human Services deems to be unjustified.

The bill would create a national Medical Insurance Rate Authority, which would be able to prevent such increases. Feinstein's announcement follows reports that Anthem Blue Cross had intended to jack up premiums for certain policyholders in California by as much as 39 percent.

A report published Thursday by HHS found that health insurance companies have requested dramatic premium hike increases over the past year in states beyond California -- 56 percent in Michigan, 24 percent in Connecticut and 23 percent in Maine.

"This is unconscionable. It places a huge burden on people who are already struggling in these tough economic times, including the estimated 700,000 Anthem Blue Cross policyholders in California," said Feinstein in a statement. "The insurance industry reaps soaring profits by piling massive financial burdens onto consumers. According to a recent study by Health Care for America Now, America's five largest insurance companies reported record profits of $12.2 billion in 2009, an increase of $4.4 billion, or 56 percent, from 2008. And WellPoint, the parent company of Anthem Blue Cross, reported earning $2.7 billion in the fourth quarter of 2009."

The HCAN study Feinstein referenced also found that the five largest insurers were reaping some of their largest profits by participating in Medicare, but charging more for the service. The insurers, Feinstein noted, had boosted enrollment in government-subsidized programs administered by private plans -- including Medicare and Medicaid -- by 688,000, noting that insurance industry executives see "great opportunity" in serving public programs because private purchasers of insurance are being priced out of the market.

Feinstein's office said that her bill would do the following:

· Require companies to justify unreasonable premium increases, using a process to be established by the HHS Secretary.

· Give the Secretary authority to deny or modify health insurance rate increases that are found to be unjustified.

· Require the Secretary to determine whether states have the capability to conduct rate reviews. To assist the Secretary, the National Association of Insurance Commissioners will submit a report that examines current state authority, capabilities, and recent rate review actions.

· Establish a Medical Insurance Rate Authority to advise the Secretary. It will have seven members -- two consumer representatives, one insurance industry representative, one physician, and three additional experts.

Comments

[massjim]

08:33 PM on 02/22/2010

I demand price controls for premium Belgian beer and pizza!

[JudyWren]

07:54 AM on 02/22/2010

I'm beginning to feel like a broken record. My formerly self-employed disabled, 63 year old hubby's Blue Cross payment is now over $1200 per month. He does not qualify for Medicare. Blue has raised our rates 2x a year for the past 4 years. Whenever I read people complaining about "Obamacare" I could scream. We need help! This has to pass or a whole chunk of this country is going to sink.

[padrushka]

03:53 AM on 02/22/2010

huumm..the companies must see something blowing in the wind as i anticipated, if we got close to anything on health care. i wonder how this will all play out? still amazes me this issue is not resolved when it seems they must understand to continue to not solve health care will bankrupt the country as badly as any war. i thought it was the reason the subject came up to begin with,it was not for us it was economic.

[aflyinyoursoup]

12:33 AM on 02/22/2010

"...Feinstein's office said that her bill would do the following:

· Require companies to justify unreasonable premium increases, using a process to be established by the HHS Secretary.

· Give the Secretary authority to deny or modify health insurance rate increases that are found to be unjustified....Blah blah blah. blah blah blah.

The For-Profit Health Insurance Industry IS UNJUSTIFIED!

All this will do is perpetuate the scam by giving citizens false hope that someone is actually protecting them. In fact it will simply be another diversionary tactic to preserve the status-quo!

Enough of this political theater......Enough!

[realitytrumpsbull]

12:27 AM on 02/22/2010

What if nobody paid their premiums next month?

[CTtransplant]

12:22 AM on 02/22/2010

Simple solution:

1) Pass Medicare for All through reconciliation and let it start as early as July, 2010;

2) Change it so that there are no income limits on Medicare/Social Security contributions as of July, 2010 - it should continue for everyone until retirement age...and only THEN should Medicare/Social Security contributions stop! In other words, pay into it until you go on Social Security! Very straight forward...and simple to do!

3) Eliminate the anti-trust exemption for insurance companies...although, if 1) & 2) are put in place, the buying power of the Federal Government will assist in cost reduction/containment.

4) Assign a reasonable monthly premium to Medicare for All that will be affordable for all!

And, by all means, get RID of the offshore account tax loopholes! This is what creates an unfair burden on the backs of middle-class taxpayers!

[aflyinyoursoup]

12:11 AM on 02/22/2010

"...Sen. Dianne Feinstein (D-Calif.) said Friday that she plans to introduce legislation that would bar insurance companies from enacting health insurance premium rate increases that the Secretary of the Health and Human Services deems to be unjustified..."

No, Dianne, you need to introduce legislation that will BAR PROFIT from health insurance!.... Period!
Ge It? Capice? Understand?
Now go back to your office and write it....

[Raster]

10:57 PM on 02/21/2010

Health insurance is still private-for-profit business. This is such weak grandstanding it's pathetic.

[talkitreal]

08:59 PM on 02/21/2010

yes!! yes!! yes!! Someone needs to be watching out for the American people !!!

[masher]

04:37 PM on 02/21/2010

What Feinstein is trying to do quite the masses down. Rather than proposing an end to insurance corporation's anti-trust exemption she proposes something that she knows full well won't work. Her proposal will fail and then she will act defeated and tell her voters "I tried my best but there isn't anything we can do." And the beat down of the American worker goes on.

[hypyrwyf]

03:53 PM on 02/21/2010

If she can do that she will be my hero. I'm one of those with a pre-existing condition on an individual policy. They raise our rates at least once every year. I can't go anywhere else, any other company. We've met with many ins. agents who all tell us we're on the best policy available to us. I'm stuck. Every year we pay more and more for less and less coverage. It's very frustrating.

[aflyinyoursoup]

12:20 AM on 02/22/2010

Frustrating?
It's downright criminal....!
I am fortunate enough to have the same kind of coverage that Congressmen and Senators have. My monthly premiums are low simply because I'm a retired federal employee. I would gladly pay more taxes to see that every American has the same coverage.....i.e, Medicare for all.
I sincerely hope that you and every American will soon be treated to European-style medical coverage, and I wish you health and prosperity.

[blacktea]

03:16 PM on 02/21/2010

fascism is here

[johnjohn1234]

06:08 PM on 02/22/2010

So speaks someone who obviously has an employer paid healthcare program. If you were struggling like the rest of us you might not be so smug. Once one of your family gets sick you might not have the same response. Look the word up though, you are not using it correctly....

[jdacal]

12:24 PM on 02/21/2010

Hopefully the bill will include something about not allowing the insurers to reduce coverage, otherwise passing a bill to stop premium increases will only give them permission to reduce coverage which is probably what the insurers would want anyway.

I always get squeamish when I see Feinstein trying to help, because when the votes are cast it usually turns out to be the total opposite of her stated intention at the beginning of the process.

[CaptD]

11:56 AM on 02/21/2010

Diane will be getting my vote!

but I'm NOT SURE ABOUT SENATOR BOXER:

When asked (yet again) for re-election $ for Senator Boxer, here is what I said:

I'm out of work and my Health CARE/Insurance is going up 65%, what is she doing about that (except wanting to keep HER job!)!

I'd rather see her announce that if a STRONG PUBLIC Health Care OptIon DOES NOT PASS she will resign;

so we do not have to vote her out of Office... Oh and BTW: take me off your email list...

[SYR]

11:15 AM on 02/21/2010

Great news, but now that the word is out all the health insurance corporations will dramatically raise all premiums just like all the credit card companies raised interest rates. You can't give these businesses time to "adjust" to change because they rape the American public while "adjusting."

We have to find a way to surprise them with these changes so we don't get hurt before they take effect.