Sebelius Demands Health Insurance CEOs Explain Rate Hikes
Wednesday 10 March 2010
by: Grace Huang, t r u t h o u t | Report
As part of the White House's final push on health care reform, Health and Human Services Secretary Kathleen Sebelius on Monday called for health insurance executives to publicly explain why they are raising premiums.
"It's time for these insurance company CEOs to do their part to make the system more transparent for the American people," she said in a formal letter. "If insurance companies are going to raise rates, the least they can do is tell us why."
This follows up on a meeting last week with CEOs from five major health insurance companies, where Sebelius said all parties involved agreed that more transparency would benefit everyone. She in turn asked them to post their proposed rate increases and the actuarial data supporting them online.
In a letter to UnitedHealth Group Inc., WellPoint Inc., Aetna Inc., Health Care Service Corporation and CIGNA HealthCare Inc. Sebelius asked the insurers to disclose information such as cost increase estimates, explanations for their necessity, the number of people who will receive such increases and an explanation of measures the companies are taking to improve the affordability of health care.
The health secretary has led the effort from the administration to call attention to the ever-rising insurance premiums that many have to face, citing figures such as Anthem Blue Cross' plan to increase rates by as much as 39 percent for some customers.
Insurers have argued that these increases are necessary because of increasing medical costs and the current economic situation, which has caused them to lose customers, especially healthier individuals. This leaves behind a risk pool of people who are sicker and cost more to insure, which in turn continues to drive up prices and push more people out of health care.
The premium rate increase "highlights why we need sustainable health care reform to manage the steadily rising costs of hospitals, drugs and doctors," Anthem said in a statement last month.
President Obama wants to pass the health bill before he leaves for Asia on March 18 and lawmakers leave for a two-week break. But concerns persist among Democrats, who are unsure whether the president's deadline can be met or enough votes can be gathered in the House on time.
Republicans also have continued to argue the current proposal should be abandoned because most Americans don't want it and it is too expensive to implement at a time when the US faces economic difficulties.
"We are drowning already in a sea of debt ... We're looking at $10 trillion in new debt in the next 10 years," said Senate Minority Leader Mitch McConnell in an interview Sunday. "I think the American people are saying to us, stop this job-killing health care bill, we know it will drive taxes up and that will not be good to help us get out of the recession, step back and terminate the spending spree."
Sebelius argued that the Congressional Budget Office, a neutral and nonpartisan agency, said the plan will lead to about $150 billion in savings in the first ten years, followed by almost $1 trillion in deficit reduction.
When discussing Republican opposition to the measure, Sebelius said that while President Obama's bill includes many Republican ideas such as selling insurance across state lines and measures to combat fraud and abuse, a fundamental divide continues to be the amount of regulation needed to provide more oversight for the insurance industry. Disagreement on this fundamental issue might hamper getting bipartisan support.
"Though there are lots of Republican ideas in the bill ... we are hopeful that there will be Republican votes, but I'm not sure there will be," she said on Sunday.
However, she said that the administration does want things to move more rapidly, and that this is probably why President Obama called for an up-or-down vote and the rapidly approaching deadline.
"One of the things that happens in legislative sessions in state legislatures is that they have a timetable," she said. "We have to pass a budget. You have to move things forward. That's what I get from Americans all over the country. They want something to be done."

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Comments
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OMG this is not allowed
Wed, 03/10/2010 - 16:50 β Anonacmous (not verified)OMG this is not allowed under 'proprietary' shield!!!Is going to blow your possibilities of being hired by the industry post-governemnt service!!
The health insurers raise
Wed, 03/10/2010 - 17:21 β Anonymous (not verified)The health insurers raise rates because they can. Nothing in the current Senate bill will change that unfortunate situation. In fact, by mandating purchase of health insurance and using taxpayer money to subsidize the cost, the rate situation is likely to get even worse.
The least they can do. Wow,
Wed, 03/10/2010 - 17:46 β Anonymous (not verified)The least they can do. Wow, thanks Ms. Sebelius. Democrats are merely spinning their way through this process. This will do nothing about anything.
Do Democrats really need to tell people their insurance premiums are too high? NO. But they do need to do something about it. Alas, all we can do is hope they will, because actually doing something will alienate a big source of funding for them. We are still hearing about the need for "bipartisanship", as this dead corpse lies rotting in Congress for all to see. And as the smell reaches the rafters, we can see that plainly the system we call government is broken, as Democrats try to put lipstick on their healthcare reform "pig".
The insurance companies are
Wed, 03/10/2010 - 23:40 β BrainiacV (not verified)The insurance companies are going to make a killing. They've raised my deductibles to the point I can't afford procedures I probably should have done. So in the end, they get to keep my payments without having to expend anything.
Why are they raising their
Thu, 03/11/2010 - 00:50 β badbf (not verified)Why are they raising their rates? Hmmm. let me think.
Could it be that they are a bunch of heartless greedy money-grubbing sons of....?
Naw. I'm sure they have plenty of humanitarian reasons to gouge the public for what should be a basic right for all citizens of the USA.
KS was quoted as saying
Thu, 03/11/2010 - 03:01 β Anonymous (not verified)KS was quoted as saying that, without the legislation going through, the health insurance industry was going to go out of business.
What I would like to know (most seriously) is .. how soon would this take?
IMO, that is a critical question in planning strategy. I think most Americans want us to go with a single payer system, like Canada, but many feel that it's a losing battle with a Congress so "in bed" with these corporate moguls. They're then faced with legislation that will benefit them, maybe save their lives, even though they know it falls far short.
If those who are deeply opposed to the legislation for reasons more related to their premiums can also map out a course of action, based on real assessments of numbers, by people who know what they're doing, they might convince more people to actively oppose it. That is, by showing how we could get to single payer and how soon.
Otherwise, like many, I think it's likely best to pass the bill. For me and mine, it could make a very big difference at exactly the right time.
No one I've read has yet provided this kind of specific, empirically based, forecasting.
I heard in the testimony
Thu, 03/11/2010 - 03:07 β Anonymous (not verified)I heard in the testimony from the Wellpoint executive before representatives (on Bill Moyers) -- a CEO who makes over a million a year and over 8 million in stocks and a 750,000. bonus -- that Wellpoint alone has about 50 million (?) customers.
So how long would it take for that company, as well as all the others, to go out of business? That is, if the legislation didn't pass.
If someone has that answer, or opinions, I'd like to hear them. Especially from single payer supporters.
If an ingenious reporter can find some versed enough in mathematical projection, that too, would help ...
.....Another rhetorical
Thu, 03/11/2010 - 05:24 β PAM (not verified).....Another rhetorical question,and another hook with no barb...and the fish of course will get away
again...does this party ever straighten up and do something courageous... ???
Here's an idea. Let them
Thu, 03/11/2010 - 15:35 β mysterioso (not verified)Here's an idea. Let them raise their rates as much as they want. Each time they do this tax them an equal amount and give the tax money to the people who just had their rates raised and as vouchers for others to buy health insurance. Or, to fund a public option.
The show goes on. Sebelius
Fri, 03/12/2010 - 01:40 β Anonymous (not verified)The show goes on. Sebelius supports giving them 30 million new customers to keep them from going out of business. And forever chiseling Congress' beholdness to their Masters in Marble. How long must we continue to watch this staged farce between Congress and the people who were intent on sending them into office -- i.e. the health insurance industry?
How long would it take for them to go out of business if we just let things run their normal course?