President’s Proposal Introduces “AIG Risk” in Federal Insurance Rate Regulation
Edmund Haislmaier /
The White House has just issued an 11 page concept paper (PDF) for yet another health care bill that, among other items, includes a proposed new Federal “Health Insurance Rate Authority.” The Administration has yet to provide any legislative language on how this new Federal regulatory regime would operate, but based on statements by the President and other officials, as well as similar provisions included in the bills already passed by the House and Senate, there is good reason for concern as to whether the President and Congress really know what they are doing in this regard.
The President and the Congressional leadership assert that health insurer rate increases are unjustified and point to some cases of recent double-digit increases announced by certain insurers. But so far they have offered no explanation of what portion of those increases they think are unjustified or their reasons for taking such a position. (more…)