Health insurance companies warned not to blame hikes on health law
An investigation into the health insurers who are falsely hiking their costs will shortly be taking place. Those found to be making these false claims will be available for public view and not able to participate in the health insurance exchanges in 2014. This is the warning that was given to health insurers by Health and Human Services Secretary Kathleen Sebelius in a very strongly worded letter in response to the recent increase several companies are proposing.
She stated that there would be a zero-tolerance for those who blamed their increases on the new health care law. Representative Pete Stark, D-Calif., chairman of the House Ways and Means subcommittee on health, is also critical of the insurance industry. Stark stated the following on Wednesday, “Insurers are using the consumer protections in health reform as a cover for their own greed.”
Health insurance providers will be frozen from participation if found to be using reform as excuse.
The insurers’ association, defended the companies’ actions stating it was not just the new health overhaul that was driving up costs, but the weak economy as well. They are sticking to their word, though, that with the new benefits that are now legally required, costs naturally increase. “The new health care reform law mandates that health insurance coverage include a wide range of new benefits beyond what many families and small businesses previously purchases, “ stated Karen Ignagni, the president and chief executive of the insurers’ association.
Sebelius reminds the insurers that the potentially unreasonable insurance premium hikes will be monitored and those found to be using the health care law as an excuse to increase their rates will be frozen from participation in the upcoming insurance exchanges in 2014.