Obama Presses Health Insurers to Give Details Online for Rate Hikes

by: Bobby Caina Calvan  |  The Sacramento Bee

Amid consumer furor over rising health insurance premiums, the Obama administration asked insurers on Thursday to post rate hikes – and the justification for them – on the Internet.

Also on Thursday, Sen. Dianne Feinstein, D-Calif., introduced legislation that would give the federal government authority to reject rate increases that insurance companies cannot justify.

The developments come as President Barack Obama intensifies his push for legislation to overhaul the country's health care system, with escalating premiums his central talking point.

Posting rate increases online would "shine a bright light" on how premiums are set, said Health and Human Services Secretary Kathleen Sebelius.

She met Thursday with the top executives of the country's largest health insurance firms, including the CEO of WellPoint, whose California subsidiary, Anthem Blue Cross, recently triggered a political firestorm when it raised rates by as much as 39 percent for thousands of customers.

"I'm hoping that the CEOs respond to the call for putting their information up in public," Sebelius said. "At the very least, they owe it to consumers to justify why the rates are sky high," Sebelius told reporters after her meeting with insurers and insurance commissioners from four states.

Insurers didn't outright dismiss the idea, "but there were no commitments of any kind," said UnitedHealth's chief executive officer, Stephen Hemsley.

Angela Braly, president and CEO of WellPoint, also took part in the White House meeting, as did Aetna and Cigna executives.

The president made an appearance at the meeting, delivering a letter from an Ohio woman who says her premiums have skyrocketed.

Anthem Blue Cross recently sent letters in the mail notifying its subscribers that it planned to raise rates by as much as 39 percent.

On Thursday, The Bee contacted the office of state Insurance Commissioner and GOP gubernatorial candidate Steve Poizner to ask whether he thinks rate increases should be posted online. Poizner spokesman Darrel Ng responded with an e-mail saying public access to that information already exists in California, albeit not online.

In California, the only venues for the public to view rate filings are in San Francisco and Los Angeles, where the state Department of Insurance allows inspection of the documents.

"The fact that you have to schlep to San Francisco to see these filings is not very transparent," said Anthony Wright, executive director of Health Access California, among those who have joined the call for greater transparency in how health insurance rates are set.

"Putting them online is a good step in California, where we have very few regulations regarding health insurance rates," Wright said.

"I think people want to know why" rates are increasing, he said. "It informs consumers as well as policymakers and others who watch the industry. How can they raise rates without justification or even without explanation?"

The rate hikes have spurred public outcry. Politicians in California and Washington have seized on them as an argument for overhaul legislation and wider regulation of the health insurance industry.

Sebelius acknowledged that the federal government and many states, including California, have little authority to bring relief to consumers.

Sebelius called consumers "absolute sitting ducks," who "don't have any bargaining power" against insurance companies.

Feinstein's legislation would give the Health and Human Services Department authority to reject or modify rate increases, according to her office. It would also establish a national Health Insurance Rate Authority.

California's insurance commissioner, unlike commissioners in at least 25 states, does not have authority to regulate premiums.

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The insurance companies

The insurance companies remind me of the timber barons of the late 19th century. Here's how, while they were clear cutting their way across the country, and leaving slag heaps in their wakes, they were so self-righteous about their "god-given" rights. These rights included logging on public land, suppressing injury and accident claims and reports, union busting, and collusion and corruption on the grandest scales.

Their insensitive greed and selfishness resulted in labor reforms, and workers' compensation insurance. Alas, it did not extend to smart forest management until very recently.
government is going to mandate that citizens have to have insurance, but only request that the insurance companies pretty please explain their predatory practices.

The parallel with the insurance companies and the timber barons - when the country becomes too sick to insure profitably, it will become a slag heap of second growth citizens, poor, stunted, uneducated and undesirable. Then we will get government health care. Too bad, because by then we will only be strong enough timber for the 21st century human paper mills...



What will the standard or

What will the standard or definition of "justified" be? Who gets to decide that? Who will check the numbers/figures the health insurers provide to "prove" that the usual double digit rates hikes are "justified."

Nice sounding words but I have great difficulty believing--after watching the bailout of the TBTF banks, the failure to break them up, the failure to insist upon compensation caps as a condition of receiving bailout funds, the bailout of AIG that paid bank counterparties 100 cents on the dollar when market value was more like 50 cents, that we can rely on the Obama administration to truly act in the public's, not the health insurer/wealthy elite's interests or benefit.

Just get rid of the health insurers all together, except for offering surplus "private" insurance over basic single payer national coverage. Same as in the UK, that way the rich still get to have better care than everyone else, or whoever else feels like paying for it, and so they will still be happy because they'll be demonstrating how much "better" they are than everyone else.

I am not interested in ineffective health insurance "reform" I am interesting in changing the way health care is provided & allocated in the US.



They need to recoup all

They need to recoup all those millions that they spent fighting Healthcare reform. If they were to lose without winning where would that replacement money come from? They still need to raise election funds for their favorite political allies too. What part of "desperate" don't you understand? Do you want them to fail and have to go to the taxpayers for a bailout? Sheeesh! It's as plain as the nose on your face why they're raising rates. Don't forget CEOs have needs too.



Oooh-- scary! Since the

Oooh-- scary! Since the government is only making toothless requests of the insurance industry rather than actually regulating them, how about asking them to publish comparative figures on their profit, bonuses and executive compensation over, say, a five year time span? Let's find out how much these guys make and how much these rate increases are greasing their pockets. And while we're at it, lets find out how many sick people have been kicked out of the insurance pool at the same time. Maybe they should be asked to "justify" their greed at the expense of others.



Anon 03:37, you beat me to

Anon 03:37, you beat me to the punch. So we've somehow gone from our government working for us to protect us from the predations of the insurers to our government asking them to play nicey-nice and make up some good lies to pacify us all? Must have taken another few millions to the re-election coffers of Obama and Congress to clear that hurdle, especially after the publication of facts that clearly demonstrate that the hike is NOT justified.
I find it laughable that some describe us as a 'pre-facist' state... and wonder what country they live in. We are long past anything 'pre-'.