President Barack Obama, marking the 90th day since passage of federal health reform legislation, met with chief executives from more than a dozen insurance companies, warning them against raising rates in response to new requirements placed on them.
Barack Obama
“There are genuine cost drivers that are not caused by insurance companies,” the president said after the meeting, according to the Washington Post. “But what is also true is that we’ve got to make sure this new law is not being used as an excuse to simply drive up costs.”
“The CEOs here today need to know that they’re going to be required to justify unreasonable premium increases,” he added.
Obama called new requirements imposed on insurance companies “what amounts to a true Patient’s Bill of Rights,” ending what he called “some of the worst practices in the insurance industry.”
“It’s not punitive,” he continued. “As I said when I met with the insurance executives, it’s not meant to punish insurance companies. They provide a critical service. They employ a large number of Americans. And in fact, once this reform is fully implemented a few years from now, America’s private insurance companies have the opportunity to prosper for the opportunity to compete for tens of millions of new customers. We want them to take advantage of that competition.”
When everyone is required to be enrolled in health insurance or face a fine, up to 44 million people who know are not ensured could be added to the insurance rolls.
The president trumpeted the new consumer protections afforded Americans in the law during a speech following the meeting, held in the East Room, where he was surrounded by some people who he said would benefit from the law, insurance company representatives, a handful of state insurance commissioners and a dozen members of Congress.
Obama said he has encouraged states to begin enrolling people in the high-risk health insurance pools, a stop-gap measure designed to help those with pre-existing conditions until 2014, when health exchanges are put into place in states.
The federal government has made available funds to help states establish the high-risk pools and a number of states have applied for the assistance. Some states, however, have declined, saying they fear the additional cost of coverage trickling down to them before 2014.
Obama reiterated his pledge for more than a year regarding health care for Americans.
“In a few years, once the new competitive marketplace comes online through insurance exchanges, discrimination against Americans with pre-exisiting conditions will be banned for good,” the president said. “That’s when individuals and small businesses will finally have the same access to the same types of insurance plans that members of Congress have for themselves.”
Among the insurance companies represented were Blue Shield of California, Excellus Blue Cross Bue Shield, Blue Cross Blue Shield of Kansas City, Blue Cross Blue Shield of Tennessee, Health Care Services Corp., Aenta, Wellpoint, Tufts Health Plan, Kaiser Permanente, CIGNA Corp. and Humana, according to the White House.
Obama: Insurers should not raise rates in response to health reform via IFAwebnews.com .
No related posts.
