Posted on 04/21/2010 3:28:39 AM PDT by reaganaut1
Fearing that health insurance premiums may shoot up in the next few years, Senate Democrats laid a foundation on Tuesday for federal regulation of rates, four weeks after President Obama signed a law intended to rein in soaring health costs.
After a hearing on the issue, the chairman of the Senate health committee, Tom Harkin, Democrat of Iowa, said he intended to move this year on legislation that would “provide an important check on unjustified premiums.”
Mr. Harkin praised a bill introduced by Senator Dianne Feinstein, Democrat of California, that would give the secretary of health and human services the power to review premiums and block “any rate increase found to be unreasonable.” Under the bill, the federal government could regulate rates in states where state officials did not have “sufficient authority and capability” to do so.
The White House offered a similar proposal in the weeks leading up to approval of the health care legislation last month. But it was omitted from the final measure, in part for procedural reasons.
Reviving the proposal on Tuesday, Mr. Harkin said: “Rate review authority is needed to protect consumers from insurance companies’ jacking up premiums simply because they can. Protections must be in place to ensure that companies do not take advantage of current market conditions before health reform fundamentally changes the way they do business in 2014.”
“Currently,” Mr. Harkin said, “about 22 states in the individual market and 27 states in the small group market do not require a review of premiums before they go into effect — and perhaps even more. This is a gaping hole in our regulatory system, and it is unacceptable.”
Under the new health care law, starting in 2014, most Americans will be required to have insurance.
(Excerpt) Read more at nytimes.com ...
Health care rationing is necessary, but it should be done by the market, not by Congress.
Typical. Force costs up, then ride to the rescue with more govt control.
And the sheeple said “Thank you, heroes. Thank you.”
Price caps worked so well in the 70’s that they are bound to work here as well...........................................
Unjustified by whose standard?
Don’t bother, I know the answer.
another unconstitutional act.
Ah yes, nothing like arbitrary power over an entire industry (representing 1/6 of our economy) by a federal bureaucrat. Watch HHS cramdown the insurance companies so that they are losing money like crazy by underwriting health insurance, forcing them out of business and the American people straight into the loving arms of Uncle Sugar.
What, those mean ol' insurance companies won't give you "affordable" health care coverage? I guess we'll have to give you universal health care. I don't want to do this, but those evil capitalists forced me into it.
We no longer have a market economy.
Vee have vent controlled apartments
Vee have siezed unjust provits vrom Vall Street
Vee have control of autovomobile industry
Vee have outlawed insurance provits
Vee only tax the eevil reech
Vee shall give you bread
Vee shall give you circus
Vee think you should say “Thank you”
I wish they would do something similar to regulate against themselves raising our taxes.
Of course, it is “different” when they do it to su.
They had the hearing, they had the mock trial of the insurance companies, and they "discovered" their own law made matters worse. REPEAL the legislation it doesn't work. 2,000 and plus pages and it doesn't work.
f’nn morons...
I wonder if people think when we call these Democrats Marxists that we are in any way kidding.
No, medical-welfare rationing should be regulated by Congress.
The largest component that drives up hospital costs is "free" healthcare mandated by MediCaid and voluntary charity-care by the providers themselves. They pass along the lack of reimbursement through "cost shifting" to paying customers, a practice that should be outlawed.
85% of the premium in Maine is paid back out in claims, half of the remainder goes to some form of taxation.
That leaves around 7.5% for salaries and overhead, and a blinding 2.5-3% profit margin.
Once again, government isn't the solution, government IS the problem.
“Mr. Harkin interrupted the hearing to note that one of the nation’s largest insurers, UnitedHealth Group, had just reported that its first-quarter earnings had increased 21 percent, to $1.19 billion, surpassing Wall Street expectations. “
Big deal. They made $1B on sales of over $20 billion. Under a 5% margin. That does not seem large. These Dems always cite the profit dollars cause “billions” sound huge. But since sales are large it is not a large percent return. Of course the government has no problem spending trillions.
Also from the article: “Senator Lamar Alexander of Tennessee, the No. 3 Republican in the Senate, said: “Health insurance companies’ profits for one year equal about two days of health care spending in the United States. So even if we were to take away all the profits of the so-called greedy insurance companies, that would still leave 363 days a year when health care costs are expanding at a rate our country cannot afford.”
So instead of figuring out what the underlying cost drivers are, the Dems just lower the premiums. Medical costs are generated by the health care system, not the insurance companies.
Here comes the “public option!” - optional it never was.
Insurance commissioners in each state already regulate premiums. Matter of fact, if they put a price control on it, and the premiums aren’t enough to pay potential claims, they will force the company to not write any new policies.
Congress will cause insurance companies to become bankrupt within a year or two and we will hear from stupid liberals how they would rather ‘go out of business’ than help people if they can’t make a gazillion dollars.
“Health care rationing is necessary, but it should be done by the market, not by Congress.’
It should be done by the family.
“Medical costs are generated by the health care system, not the insurance companies.”
Looking at what we pay with and then without insurance a very large percentage of healthcare costs are the result of the insurance companies.
Plus I thought the Dems said the health care bill was one of the greatest bills passed in history. Now a month later that are already needing to make significant changes? Did they read the bill before they passed it. If they screwed up such a significant bill, why should the public trust the Dems on any other legislation?
The Dems think they can turn the tide in their favor by making the GOP “look bad” with the Financial “Reform” bill (i.e. unlimited bailouts) and the Cap Premiums bill (i.e. further destruction of health care system). Instead they look like complete idiots. Yes, there is a solid block of 35% of voters that will think the Dems are great. They are still 15% short. The GOP needs to make it clear why these bills will only do more harm.
I am looking forward to November.
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