Obama administration to require health insurance companies to justify any increases of 10% or more

[Still a Democrat]

WASHINGTON — The Obama administration said on Tuesday that it would require health insurance companies to disclose and justify any increases of 10 percent or more in the premiums they charge next year.

State or federal officials will review the increases to determine if they are unreasonable, the administration said in proposing regulations to enforce the requirement.

Kathleen Sebelius, the secretary of Health and Human Services, said the review of premiums would “help rein in the kind of excessive and unreasonable rate increases that have made insurance unaffordable for so many families.”

The new health care law, signed in March by President Obama, calls for the annual review of “unreasonable increases in premiums for health insurance coverage.” The law did not define unreasonable.

http://www.nytimes.com/2010/12/22/health/policy/22insure.html?_r=1&hp

[Lochloosa]

1. 38% for me this year.

[Lochloosa]

2. Wow....who would unrec this one?

[CatWoman]

13. some asshole with plenty of cash, apparently....

[Poll_Blind]

3. Expect to see 9.9% increases in premiums then! n/t

PB

[MannyGoldstein]

8. Should have been set at the inflation rate

More faux tough-guy stuff.

[Delphinus]

20. That was

my exact thought. There's always a way for them.

[Donnachaidh]

4. better make it retroactive or this legislation is useless

They've ALREADY raised policies obscene amounts. Why do this now? Oh wait -- a photo-op may be available. :eyes:

[Zoeisright]

5. Justify to whom? And are there any penalties or enforcement?

Without those, this is meaningless.

[Marr]

9. Apparently, if they increase rates above 10% per year,

and the increase is deemed unreasonable by a government review (probably full of people from the insurance industry), then... they will post a note on a couple of websites. This Obama fella doesn't mess around!

[tridim]

11. Actually it will DQ them from being in the exchange starting in 2014.

Companies not in the exchange will not survive.

[Marr]

16. Actually, it says if they are found to repeatedly do this-- meaning at least two years--

then they could, not will, be removed from the exchange

[drm604]

6. I guess right now they're scrambling to raise them before the end of this year.

Maybe they should have announced this on New Year's Eve.

[Marr]

7. With no definition of "unreasonable" rate increases, and no guaranteed punishment for intstituting

such rate increases, this is little more than the Obama Administration endorsing it's own policy.

[BonnieJW]

10. Too bad it's starting next year

after everyone's premiums went sky high this year.

[abelenkpe]

12. Who cares?

An increase of 9% (which is what insurance companies will then do) will destroy most families. How is this protecting consumers? Another lame weak BS move.

[Shandris]

14. If you fall for this one, you're not thinking clearly.

Humana, for example, made it poignantly clear how this one is going to work by what they did in our area.

Simply stop offering the 'old plan' and rework it as a 'new plan'. Voila! There was no 'increase' because the plan didn't exist!

Nevermind the premium MORE than doubled.

This is as useless as transatlantic driving directions.

[Vinca]

15. So 10% a year x 3 years = screwing those that can afford it 30% more by 2014.

Such a deal.

[FiveGoodMen]

17. 33.1% more.

Don't forget it compounds.

[mrdmk]

18. Increases in Insurance Rates need to be pin to the Cost of Living increases

Lets see Corporate Insurance companies deal with that! Screw them...

[TheKentuckian]

19. 10%??? How long can even that go and many workers still be in budget even with subsidies

More and more will be sitting with waivers and hoping to not get sick as time marches on.