Feinstein measure would give feds power to block increased health insurance rates

[babylonsister]

Feinstein measure would give feds power to block increased health insurance rates
By Pete Kasperowicz - 06/10/11 10:31 AM ET



Sen. Dianne Feinstein (D-Calif.) is offering legislation to give officials the power to block health insurance rate increases.

Feinstein's proposal would change last year's healthcare law to give both federal and state government officials the ability to block rate increases. Federal officials have no such power now, and while states can block rate increases after a review, the California lawmaker's measure would give them more power.

The question of whether the government could block healthcare premium hikes was hotly debated during last year's healthcare debate. President Obama originally wanted the federal government to have the power to block rate hikes, and Feinstein last year put forward the idea that many Democrats initially supported.

Under the current healthcare law, rate increases higher than 10 percent must be reviewed by state or federal officials starting in September. The reviews are aimed at determining whether a rate hike is excessive or whether it is based on actual cost increases. The Department of Health and Human Services (HHS) has said it expects state officials to conduct most of these reviews.

Feinstein's proposal would toughen up this portion of the law substantially. Under her amendment, HHS or state insurance regulators would have the power to deny rate increases, force a modified rate increase proposal, or require rebates to consumers if an increase is deemed excessive.

more...

http://thehill.com/blogs/floor-action/senate/165765-feinstein-seeks-healthcare-law-change-to-let-feds-block-health-insurance-rate-increases

[flpoljunkie]

1. Pass it in the Senate and call the Republican House out every day 'til they pass it, too

I would have to also say that 10% is a pretty high bar--10% every year adds up quickly--especially when a family policy average cost is an about $19,000 a year in 2011--an astounding figure in itself.