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    Feds: Proposed insurance rate hikes 'unreasonable'

    Associated Press – Thu, Jan 12, 2012

    MONTGOMERY, Ala. (AP) — U.S. Department of Health and Human Services Secretary Kathleen Sebelius says proposed increases in health insurance premiums for customers in five states have been deemed "unreasonable" by the agency.

    Federal officials said in a statement Thursday they've determined that Trustmark Life Insurance Co. proposed unreasonable rate increases in five states — Alabama, Arizona, Pennsylvania, Virginia, and Wyoming.

    Officials say they made the determinations by using the "rate review" authority from the Affordable Care Act to gauge whether the premium increases are reasonable. Sebelius said that under the 2010 health care law, insurance firms are required to disclose rate increases over 10 percent and justify them.

    Sebelius called for the Lake Forest, Ill.-based firm to immediately rescind the rates or explain why not. A company representative was reviewing the statement Thursday afternoon.

     

    2 comments

    • Rob D
      Rob D  •  Schaumburg, Illinois  •  4 mths ago
      I see it coming a mile a way. HHS start calling every rate increase "UNREASONABLE" by a politicians standard. Force Health Insurers to either lose money or get out of the business. Create a HEALTH INSURANCE CRISIS, by interfering with a free and VERY COMPETITIVE market. I am surprised it took this long for Obama administration to insitute phase 2 of their scheme to socialize medice.

      Why do cost go up, because there are less bill paying customers who have insurance to pay for the health care infrastructure. Medicare don't reimburse like private health does, so health care try to stick it to private health plans to get the money. Follow the money.
    • Franklin
      Franklin  •  Louisville, Kentucky  •  4 mths ago
      they`ll figure something out
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