Senate Confronts Hike In Health Care Premiums

By Laurel Brishel Prichard University of New Mexico/ Talk Radio News Service

The Senate Committee on Health, Education, Labor and Pensions confronted the issue of ever-rising premiums in the health insurance market and the possible need to enact legislation to block unjustified increases during a hearing Tuesday.

The absence of language specifically barring unfair increases in the health care reform legislation passed last month has prompted Sen. Dianne Feinstein (D-CA.) to propose the Health Insurance Rate Authority Act, which would give the Secretary of Health and Human Services the ability to stop premium or other unjustifiable rate increases.

“Without further legislative action, I am concerned that health insurance companies will continue to do what they have done for far too long: put their profits ahead of people,” Feinstein, who appeared before the committee as a witness, said.

President and CEO of America’s Health Insurance Plans (AHIP) Karen Ignagni, who also testified before the committee, stressed that the members of her association were “fully cognizant” of the burden that high insurance premiums place on Americans.

However, “Health care premiums are a symptom, not a cause,” Ignagni said.

Ignagni insisted that the rising cost of premiums is a result of the increase in the underlying costs of health care. According to Ignagni, in order to keep premiums in check, the government needs to look beyond the insurance market and into the health care fields to see why those cost have been elevated.

“That is what our advocacy in health care reform had been all about. We were very, very concerned [when] we saw costs exploding,” said Ignagni.

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 Care Costs Have Doubled In Past Decade, Says Sen. Klobuchar

By Laura Smith, University of New Mexico-Talk Radio News Service

During a press conference Tuesday on the importance of health care reform for middle class Americans, Sen. Amy Klobuchar (D-Minn.) said that health care costs have more than doubled in the past decade and could grow further.

“The average American spent $6,000 on their health care just ten years ago. Now the average American family is spending $12,000, and in ten years from now, without any bending of the cost curve, they will be spending $24,000 a year. If we do not act, these costs will break the backs of the American people,” Klobuchar said.

The senator attributed the numbers to Sen. Ben Cardin (D-Md.)

Klobuchar went on to outline what she would like to see brought about through significant reform.

“It is my hope that no one will have to choose between necessary medical care, and their mortgage," said Klobuchar. "For the middle class, reform will mean stable coverage that can’t be taken away, stable costs that won’t eat away at paychecks and better care."

Baucus Says Health Bill Is Solid

By Laura Smith, University Of New Mexico-Talk Radio News Service

Sen. Max Baucus (D-Mont.) said Monday that a significant step was taken last week when the Senate Finance Committee approved the America’s Healthy Future Act.

“Our bill lowers federal deficit, ends insurance discrimination, expands coverage … improves quality, and also guarantees [that] in our country, finally, nobody will ever go broke just because they get sick,” Baucus said during a teleconference with reporters.

The Montana Democrat went on to comment that he thinks one of the biggest travesties in America is how many people go bankrupt because of high medical bills.

Baucus, who chairs the Finance Commitee, said the bill will help with lowering costs, be deficit neutral in approximately 10 years and will protect Americans from harmful insurance industry practices. Baucus also stressed that the legislation will stop companies from denying coverage to those who have pre-existing conditions and to those who become ill while insured.

“It’s going to be reform that will provide real, quality, affordable health insurance for millions more Americans,” Baucus said. “It’s also a reform measure that can pass.”

Late Night Health Care Discussions Bring Historic Progress, Says Pelosi

By Courtney Ann Jackson-Talk Radio News Service

Two more House committees have passed versions of health care reform legislation following discussions that stretched into the early hours of Friday morning. That brings the total up to three out of the five House and Senate Committees that have now reported legislation. House Speaker Nancy Pelosi (D-Calif.) noted in Friday’s press conference that this is the farthest comprehensive health reform has ever gotten in Congress.

The House Committee on Ways and Means chaired by Rep. Charles Rangel (D-N.Y.) completed their discussion and reported legislation at around 2 AM Friday. The Committee on Education and Labor chaired by Rep. George Miller (D-Calif.) had an even longer discussion which lasted till 6 AM and came back at 9 AM to complete the votes.

Pelosi said, “Congress has made historic progress on health insurance reform that will put patients and doctors back in charge and ensure quality, affordable, accessible health care for America’s middle class.”

Pelosi also noted the recent endorsement from the American Medical Association (AMA) of America’s Affordable Health Care legislation.

“This legislation includes a broad range of provisions that are key to effective, comprehensive health system reform...The AMA wants the debate in Washington to conclude with, real, long overdue results that will improve the health of America’s patients.”

House Majority Leader Steny Hoyer (D-Md.) joined the Speaker and two Chairmen to announce the “historic progress.”

“These next pivitol months will finally be our chance to deliver-and we will,” said Hoyer.