HHS Chief Kathy Sebelius sent a rather interesting letter to "America’s Health Insurance Plans" (AHIP), the national association of health insurers.
Apparently, she got upset that health insurance companies were trying to undercut Obamacare by blaming potential rate increases on the bill.
http://www.hhs.gov/news/press/2010pres/09/20100909a.html
From the letter:
It has come to my attention that several health insurer carriers are sending letters to their enrollees falsely blaming premium increases for 2011 on the patient protections in the Affordable Care Act. I urge you to inform your members that there will be zero tolerance for this type of misinformation and unjustified rate increases.
-snip-
Given the importance of the new protections and the facts about their impact on costs, I ask for your help in stopping misinformation and scare tactics about the Affordable Care Act. Moreover, I want AHIP’s members to be put on notice: the Administration, in partnership with states, will not tolerate unjustified rate hikes in the name of consumer protections.
Already, my Department has provided 46 states with resources to strengthen the review and transparency of proposed premiums. Later this fall, we will issue a regulation that will require state or federal review of all potentially unreasonable rate increases filed by health insurers, with the justification for increases posted publicly for consumers and employers. We will also keep track of insurers with a record of unjustified rate increases: those plans may be excluded from health insurance Exchanges in 2014. Simply stated, we will not stand idly by as insurers blame their premium hikes and increased profits on the requirement that they provide consumers with basic protections.
etc.
emphasis mine
This seems to be a not-so-veiled threat: Either stop disagreeing with us or we're going to take revenge on you economically.
This seems to be one of the most flagrant abuses of the bully pulpit I've seen in a long time.
I know. Technically, the threat was only to hurt companies with the unjustified rate increases. But it sure reads as though the implied threat applies also to those spreading the alleged "misinformation."
If a private organization disagrees with a federal executive agency, their remedy is to get their message out and win the public debate. This letter seems very close to that border between regulating an industry and infringing on free speech.
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I think it clearly is usage of a billy pulpit. However, since the government insisted on the impossible to get healthcare passed: increased coverage without increases in costs they are now in a bind. Either admit they were wrong and deceiptful (something they always accuse Bush of) or squash free speech. Apparently the administration only believes in free speech when it is advantageous to them.
Originally posted by sh76You must be joking. It looks like a letter telling insurance companies to stop lying about their reasons for premium increases. It is also telling them that unjustified rate increases will make companies that do them subject to sanctions under the law. That is bad ............... how again?
HHS Chief Kathy Sebelius sent a rather interesting letter to "America’s Health Insurance Plans" (AHIP), the national association of health insurers.
Apparently, she got upset that health insurance companies were trying to undercut Obamacare by blaming potential rate increases on the bill.
http://www.hhs.gov/news/press/2010pres/09/20100909a.html
From th ...[text shortened]... ms very close to that border between regulating an industry and infringing on free speech.
Insurance companies have been jacking up health insurance premiums at double digit rates per year for a decade. To try to blame another round of premium increases on the health care reform bill, 99% of whose provisions aren't even in effect yet, is a fraud on their customers and the public.
Originally posted by no1marauderYou think it's a legitimate function of government to order people to stop telling political lies?
You must be joking. It looks like a letter telling insurance companies to stop lying about their reasons for premium increases. It is also telling them that unjustified rate increases will make companies that do them subject to sanctions under the law. That is bad ............... how again?
Insurance companies have been jacking up health ...[text shortened]... 9% of whose provisions aren't even in effect yet, is a fraud on their customers and the public.
Originally posted by no1marauderI do not believe the insurance companies are lying about their reason for raising premiums. I believe the government is lying. Of course if the government has their way, I'll never know because they want to stop free discussion.
You must be joking. It looks like a letter telling insurance companies to stop lying about their reasons for premium increases. It is also telling them that unjustified rate increases will make companies that do them subject to sanctions under the law. That is bad ............... how again?
Insurance companies have been jacking up health ...[text shortened]... 9% of whose provisions aren't even in effect yet, is a fraud on their customers and the public.
Originally posted by quackquackCertainly you are ideologically naive enough and gullible enough to believe that somehow the health care reform act is somehow forcing insurance companies to raise their premiums NOW. And you would believe this whatever the government did or didn't do.
I do not believe the insurance companies are lying about their reason for raising premiums. I believe the government is lying. Of course if the government has their way, I'll never know because they want to stop free discussion.
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Originally posted by no1marauderI recall that you yourself were less than enamored with Obamacare - you much preferred to have a single-payer approach or at least something that included a public option.
You must be joking. It looks like a letter telling insurance companies to stop lying about their reasons for premium increases. It is also telling them that unjustified rate increases will make companies that do them subject to sanctions under the law. That is bad ............... how again?
Insurance companies have been jacking up health ...[text shortened]... 9% of whose provisions aren't even in effect yet, is a fraud on their customers and the public.
Since the great majority of Obamacare hasn't taken effect yet, I do agree that blaming current premium hikes on Obamacare is extremely dishonest -- but once Obamacare does take effect, isn't this the sort of thing that's likely to happen? -- unless insurance companies face true competition in each of their markets (such as from a public option), they'll just raise rates by the same amount as the subsidies being offered by the govt to help people pay premiums. So essentially, the government will be levying taxes (or borrowing from China) to provide largesse to insurance companies.
Originally posted by FMFIs this fraud though?
Isn't it a legitimate function of government to protect consumers from fraud?
The rates are being increased. The consumers know that.
The insurance companies blame the increases on Obama.
Obama says "No; the rate increases are your fault."
Even if Obama is right, is that "fraud" or merely a perhaps false political claim?
Originally posted by no1marauderRegulating and trying to prevent the premium increases is not my problem. My problem is with ordering the insurance companies to not blame the bill for the increase.
How is an insurance company increasing their premiums to their customers "political"? It sure sounds like "commerce" to me.
Originally posted by MelanerpesThe health care reform bill was far from optimal. However, health insurance premium rates are regulated in many states. Furthermore, as Sebellius points out, if companies make unjustified premium increases they could be excluded from the exchanges where those receiving subsidies are to buy the insurance. This would be a most effective sanction which is why they are yelping about Sebellius' letter.
I recall that you yourself were less than enamored with Obamacare - you much preferred to have a single-payer approach or at least something that included a public option.
Since the great majority of Obamacare hasn't taken effect yet, I do agree that blaming current premium hikes on Obamacare is extremely dishonest -- but once Obamacare does take effec ...[text shortened]... will be levying taxes (or borrowing from China) to provide largesse to insurance companies.
Originally posted by sh76"I ask for your help in stopping misinformation and scare tactics about the Affordable Care Act."
Regulating and trying to prevent the premium increases is not my problem. My problem is with ordering the insurance companies to not blame the bill for the increase.
That's your idea of an "order"?
Originally posted by no1marauder"We will not stand idly by as insurers blame..." right after the thing about excluding companies from the plan is my idea of an order, yes.
"I ask for your help in stopping misinformation and scare tactics about the Affordable Care Act."
That's your idea of an "order"?
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Originally posted by no1marauderperhaps Sebelius should have been more succinct:
The health care reform bill was far from optimal. However, health insurance premium rates are regulated in many states. Furthermore, as Sebellius points out, if companies make unjustified premium increases they could be excluded from the exchanges where those receiving subsidies are to buy the insurance. This would be a most effective sanction which is why they are yelping about Sebellius' letter.
"Some insurance companies want to disobey our laws and enact unjustified rate increases. They want to use the national healthcare law as their "justification". We're not buying it. Stop whining and obey the law."