foodconsumer.org: Sebelius Emphasizes Transparency of Costs to Health Insurance Providers

Sebelius Emphasizes Transparency of Costs to Health Insurance Providers
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admin on 03/06/2010 18:43:00
 
By Denise Reynolds
President Obama called health insurance executives to a meeting on Thursday to
discuss the “jaw-dropping rate increases”.  Health and Human Services
Secretary Kathleen Sebelius instructed the insurance companies to be more
transparent when seeking higher premiums.
According to Sebelius, “The top five largest for-profit insurance companies
filed earnings of $12.2 billion last year while dropping coverage for 2.7
million Americans.”
Executives attending the meeting included the CEO’s of United Health Group
Inc, WellPoint Inc, Aetna, Inc., Health Care Service Corp, and Cigna Corp.  Also
attending were officials from the National Association of Insurance
Commissioners.  President Obama dropped by briefly to deliver a letter from
Natoma Canfield, a cancer survivor from Ohio whose health insurance premiums had
increased over 40% in the past year.
Sebelius asked the companies to give insurance consumers justification for
raising rates, including filing rate requests online along with data to show
loss trends to support those requests.  She asked that they be transparent on
administrative costs and marketing efforts to give an overall picture of their
revenue and expenses.
According to the Wall Street Journal, WellPoint executives have blamed their
increases in California for the recent tax increase for Anthem Blue Cross Blue
Shield.  They say that rising medical costs have increased about 39% as
individuals are gradually becoming older and sicker.  At the same time, younger,
healthier people are dropping coverage.
Companies are also blaming pharmaceutical companies, medical-device makers,
hospitals and other health care companies that are driving up the cost of
medical care.
WellPoint chief Angela Braly told reporters after the meeting that they would
work with the National Association of Insurance Commissioners on the issues. 
The group also discussed methods on slowing the rate of health care inflation
and emphasize preventive care and chronic disease care to reduce costs.
President Obama in the meantime has been pressing Congress to deliver final
legislation on the health care reform bill.  He met at the White House on
Thursday with House Democrats, some of which are expressing a concern that the
overhaul does not include a public plan to compete with private insurers.