Officials from the Obama administration and the insurance companies have been working together on some of the coverage expansion details as outlined by the law, with some positive results. Many insurers have already implemented a provision to allow adult children to stay on their parents’ plans through age 26, and WellPoint and UnitedHealth recently announced that they would end rescission practices well in advance of the federal government’s deadline, according to the report.
Democrats, however, have accused insurers of padding their bottom line so that they will be in a more favorable position after the law has been implemented, according to the report. To protect against inflated rates, Senator Dianne Feinstein (D-Calif.) has proposed a bill that would empower the Secretary of Health and Human Services to override premium rate hikes deemed unjustifiable. This law would cover states that do not require rate reviews.
Health insurers have also been making adjustments in classifying services in order to meet the federal requirement that 80 percent of premiums go toward actual healthcare-related services, according to the report. WellPoint, for example, said in a communication to investors it will qualify disease management, medical management and its nurse hotline as healthcare expenses.
The health insurers have indicated that premiums are not the sole driver of healthcare costs in the U.S., and many of the insurers’ allies in Congress have spoken out against the law, saying Democrats should have worked to reduce costs rather than expand coverage, according to the report.
America’s Health Insurance Plans President and CEO Karen Ignagni said the association opposes the rate review bill because existing laws should be allowed to take effect before new ones are created, according to the report.
Read the AMNews report about implementing expanded coverage reforms.
