Posts Tagged - ‘health insurance premiums’

(Image: jurvetson under CC 2.0)

We’re beginning to hear more details about the healthcare reform proposals President Obama is bringing to the table for the bipartisan summit. Despite some setbacks, to Republicans’ dismay he is moving forward and splitting the difference between the House of Representatives and Senate health insurance bills.

However, it adds a new element. One of the primary focuses of the legislation will be to clamp down on the increase of health insurance rates. Controversy over price hikes (during a recession, no less) in California and other states has breathed new life into the debate, and relevant provisions recently proposed by Rep. Dianne Feinstein (D-CA) will probably play a part in the new bill.

The bill would immediately give the federal Secretary of Health and Human Services the power to review and block health insurance premium increases. Some states already have that authority, while others have no teeth and can only recommend further action by private insurers. In contrast, the federal government would be able to force health insurance companies to give consumers rebates or reverse premium increases if they are deemed excessive.

It would also create a Health Insurance Rate Authority–made up of industry experts–which would release annual reports determining what level of rate increases is “reasonable” given the market.

Republicans are understandably against further government intervention in private enterprise. In addition, it presents the issue of states’ rights: currently, each individual state is responsible for regulating the sale of health insurance plans within its borders. Several state governors want to be included in any changes.