The following is an excerpt from Bloomberg. Com
“Obama to Endorse Rules to Limit Health-Insurance Rate Increases
Feb. 22 (Bloomberg) — President Barack Obama will endorse new rules giving the government power to stop insurance-rate increases it deems unreasonable, as part of a plan to revamp the health-care system, an administration official said.
Obama’s proposal, which would give the U.S. Department of Health and Human Services the new authority over insurers, is to be unveiled today.
On Feb. 9, the President singled out for criticism proposed insurance premium increases by a California subsidiary of Indianapolis- based WellPoint Inc. that the company later delayed.
The proposal, first advanced in legislation introduced by Democratic Senator Dianne Feinstein of California, would create a seven-member Health Insurance Rate Authority to make recommendations on rate reviews and approvals. The members would include consumer representatives, an insurance industry representative, a physician, and experts in health economics, actuarial science, and related fields. It would publish an annual report on insurance-market behavior, the official said.”
Sure, insurance premiums are the real problem. It has nothing to do with the underlying cost of health care, or adverse selection. Hey, what about my auto insurance or my home owners, don’t we need federal oversight of those “unreasonable” rate increases.
I think the federal government should also regulate the increases in self-funded plans too. I know one that raised employee premiums 23% in 2010.
This move is nothing more than another attempt to focus the debate on health insurance and not the real problems affecting the system. Give the masses a good target for their wrath and put the target far off the mark. Hey, it’s easier.
Anyone want to hire a strategic planner from Wellpoint, there should be someone there looking for a job.
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