Thursday
Mar042010
Insurance Providers May Soon Have To Reveal Rationale Behind Premium Increases
By Laurel Brishel Prichard-University of New Mexico/ Talk Radio News Service
Health and Human Secretary Kathleen Sebelius told reporters Thursday that through the administration's health care reform effort, health insurance providers could soon be required to publish the rationale behind premium increases on American's policies.
“Right now we have a situation where the top 5 companies filed earning reports of $12.7 billion for 2009 in terms of profit statements and yet pivot around with double digit rate increase," Sebelius said during a conference call with reporters. “People have no bargaining power, they have no leverage and often are desperate in terms of what in the world they are going to do."
According to the secretary, posting the reasons behind raised premiums online will provide additional transparency.
Sebelius's remarks came shortly after a meeting with a variety of the heavy hitting insurance company CEO's and commissioners, including those from UnitedHealth Group, Aetna and WellPoint.
President Barack Obama stopped in during the meeting, according to Sebelius, to share a letter that he received from a cancer survivor in Ohio. Her rates were increased 25 percent last year, which put her insurance premiums at $7,000, with $4,000 in out of pocket costs, and has been informed that her rates will go up another 40 percent this year.
Sebelius quoted Obama saying “that kind of rate increase is just unacceptable and unsustainable.”
Health and Human Secretary Kathleen Sebelius told reporters Thursday that through the administration's health care reform effort, health insurance providers could soon be required to publish the rationale behind premium increases on American's policies.
“Right now we have a situation where the top 5 companies filed earning reports of $12.7 billion for 2009 in terms of profit statements and yet pivot around with double digit rate increase," Sebelius said during a conference call with reporters. “People have no bargaining power, they have no leverage and often are desperate in terms of what in the world they are going to do."
According to the secretary, posting the reasons behind raised premiums online will provide additional transparency.
Sebelius's remarks came shortly after a meeting with a variety of the heavy hitting insurance company CEO's and commissioners, including those from UnitedHealth Group, Aetna and WellPoint.
President Barack Obama stopped in during the meeting, according to Sebelius, to share a letter that he received from a cancer survivor in Ohio. Her rates were increased 25 percent last year, which put her insurance premiums at $7,000, with $4,000 in out of pocket costs, and has been informed that her rates will go up another 40 percent this year.
Sebelius quoted Obama saying “that kind of rate increase is just unacceptable and unsustainable.”
Bipartisan Caucus Calling On Government To Balance The Budget
University of New Mexico/Talk Radio News Service
Rep. Mike Coffman (R-CO) along with Reps. Jim Marshall (D-GA) and Bob Goodlatte (R-VA) unveiled new legislation on Thursday aimed at balancing the federal budget. According to Marshall, H.J. Res. 1 is an amendment that would force government to “make the tough decisions.”
Over the past 50 years, the nation's budget has been in balance only four times, said Marshall. This amendment would attempt to balance the budget within five years, which “will be a major challenge,” he said.
“It’s not the concept that is hard; it’s finding the will to do so. Millions of American families do it. Millions of American small businesses do it. 49 states do it. It's time for the federal government to do it too,” said Coffman.
With the country's debt currently over $12 trillion, the legislation would place restraints on how the government keeps its books. Even President Barack Obama would be required to submit a proposed budget for any fiscal year in which total outlays would not exceed total receipts.
“The problem that we have right now is that everyone gets what they want,” Coffman lamented.
In 1995 and 1997, a similar amendment passed through the House, but ultimately died in the Senate. This newly formed bipartisan caucus would fight to ensure the amendment passes this time around.
"I think this amendment will pass if we just get it out of the House and Senate...The states will [ratify] this in a heartbeat," said Marshall.
The resolution currently has 175 cosponsors, and needs just 125 more to reach the required two-thirds majority in order to pass the House.