Feds Would Govern Health Insurance Rates Under Feinstein Bill

2 years ago

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WASHINGTON -- The chairman of the Senate Health Committee threw his support behind a proposal by Sen. Dianne Feinstein (D-Calif.) to give the federal government authority over health insurance rate increases.

"This health care bill is not written in stone for eternity," said Sen. Tom Harkin (D-Iowa), committee chair. "It was a bill passed here and we will be modifying and changing it as we go forward. This is another modification we need to make to the bill."

The health care reform bill passed by Congress last month requires insurers to explain "unreasonable" premium increases but otherwise does not provide for federal regulation of insurance rates. The Feinstein plan would allow the federal government to step in.

"This is the only recourse that remains," Feinstein told members of the Senate committee during the first hearing on health care premiums and costs since President Obama signed the health care reform bill into law. "I'm very worried this is a glaring loophole."

Feinstein said she has no commitments yet to move the bill forward, and added that waiting to act allows insurers to increase rates before provisions in the new law take effect in 2014. "The Republicans will try to get premium increases, and they will blame health care reform," she said.

Karen Ignagni, president and CEO of America's Health Insurance Plans, testified against Feinstein's bill, saying the law offers safeguards by placing regulatory authority for insurance rates with the states. "We think it is important to let all of this proceed," she said. "The changes should be allowed to work to see where we are."

Several senators, including Sen. Lamar Alexander ( R-Tenn.), argued that the Feinstein proposal and the entire health care debate address the wrong issues.

"To me this is another Washington takeover of responsibility," he said.

Other senators raised the issue of health insurance providers posting large profits. Harkin paused mid-hearing to note that UnitedHealth Group Inc., the largest U.S. medical provider by sales, had just increased its projected 2010 earnings forecast and that its net income for the quarter rose to $1.19 billion.

Filed Under: Senate, Democrats, Republicans, Health Care, Obama Administration, Congress

Tagged: Health insurance rates, Health reform bill, HealthInsuranceRates, HealthReformBill, Karen Ignagni, KarenIgnagni, Sen. Dianne Feinstein, Sen. Tom Harkin, Sen.DianneFeinstein, Sen.TomHarkin

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