President Barack Obama and Health and Human Services Secretary Kathleen Sebelius on Mar. 8. (AP Photo/Charles Dharapak)
By Bruce Japsen
| The Obama administration’s top health official this afternoon stepped up
scrutiny of rate increases by the parent of Blue Cross and Blue Shield
of Illinois and four other large health plans, urging them to “publicly
justify premium hikes.”
“If insurance companies are going to raise rates, the least they can do
is tell us why,” Health and Human Services Secretary Kathleen Sebelius
said on a conference call this afternoon with reporters. “I asked CEOs
to post online the actuarial justification for premium hikes so
consumers can see why their premiums are skyrocketing.”
Sebelius said her formal letter today to these companies comes following a meeting last Thursday with chief executive officers of Chicago-based Health Care Service Corp.; Wellpoint Inc.;Aetna Inc.; UnitedHealth Group; and Cigna Corp.All were sent formal letters Monday, she said.
Sebelius described as “jaw dropping” the rate increases of up to 60 percent this year for individual customers in Illinois that were reported by the Tribune last week.In addition, she mentioned premium increases as high as 39 percent in California. Such rate increases are far above medical inflation trends that are generally in the high single digit percentages, industry analysts say.
Health plans are not ruling out complying with Sebelius requests, but say they are trying to find a way to do so. Health plans have defended their rate increases by saying the costs of hospital care, prescription drugs and medical devices are driving their premium increases.
“We are reviewing her requests and are looking for the most feasible and transparent ways to help our customers better understand the drivers of health care costs,” said Health Care Service Corp. CEO Pat Hemingway Hall, who met with Sebelius last Thursday.”While premium increases continue to receive much attention, it is important to remember that premiums are a reflection of the underlying issue we must all address together — the high cost of medical care.”
Keep the government out of insurance. Balance the budget by ending Medicare!
Price controls today, communism tomorrow.
Wow, thats really smart. Get a clue.
STOP these thieving, Baastard CROOKS NOW !!!!
The attacks against private insurance companies just keep coming from the Democrats.
Today, Democrat Rep. Jeff Schoenberg sponsored Senate Bill 3382 that prohibits Illinois insurance companies from investing in countries that are designated as government sponsors of terrorism by the U.S. Department of State.
My question is why just target Illinois insurance companies. Why not oil companies and other industries that have deals with Iran?
Oh, I know. It’s becaiue the Democrats are in full force, demonizing health insurance companies.
I think it’s a fair question to ask these companies why they raised rates. The answer is easy, when you give a President, CEO, etc… $1,000,000 compensation for the running the company and $8 Million in Bonus compensation, then it makes sense to jack up my rates 20%. I’m sure the accounting methods used, perhaps stock buy backs, dividends to shareholders, etc.. also cut into that operating margin.
You would think that bonuses paid to corporate exec’s would be given for companies that make a profit more than 3%. Yet, this is exactly what Wellpoint did. They gave their executives huge bonuses and then claim they need to raise rates 39% on California customers. Wellpoint made $3 Billion last quarter.
Don’t let these T-Party folks screw with your minds. Corporations can charge whatever they want and get away with it, as long as there continues to be no competition. That is what we call PRICE GOUGING. Healthcare reform needs to happen, and it has to start with opening states up for competition with insurance companies outside state lines and/or implenenting a government sponsored plan that stops health insurance companies from price gouging it’s customers.
And how about this reason…..HIGHER PROFITS FOR THE STOCK SHAREHOLDERS…..What an absolute scam and crock of S&#T !!!!
Other than being an ambulance chaser, can anyone tell me what qualifies this moonbat for the job of Health and Human Services Secretary?
Thank you, George W. Howdy Doody Bush for The Great Recession, 2 wars and not only spending all the Clinton Administration budget surplus but handing President Obama and all Americans 93% of the current historic budget deficit. Yes, you Republicans are such fiscal hawks! And then the Teed Off Party R-E-T-A-R-D-s offer no solutions except their empty headed rhetoric.
I’m so tired of hearing republicans blame the democrats, & democrats blame the republicans. I don’t even care if any of it is true. The bottom line is, at least as far as this article is concerned and after everyone (posters here & politicians alike) is done talkingtalkingtalkingtalkingtalking, ….what is actually going to be DONE to help? DONE, not talked about?