Insurance Space

The nation’s sweeping health care reform signed into law barely a month ago has yet to be implemented with most of its provisions delayed for another four years. Yet Senate Democrats aren’t letting any of that stop them from taking the federal government deeper into the health care business with a proposal to have Washington intervene to set insurance rates.

The bill by Sen. Dianne Feinstein of California would allow the secretary of Health and Human Services to review insurance premiums and stop any rate the secretary determines to be unreasonable in some states.

The bill would allow the federal government to oversee rate increases where, the New York Times reported, states do not have “sufficient authority and capability” to do so.

A similar plan had been proposed by President Obama during debate over the health care reform law, but did not make it into the legislation.

The proposal would supersede what has been a state responsibility, but backers are apparently unhappy with the decision by way some states not to oversee insurance rates.

Democrats worry that insurers may use the next few years to raise premiums in anticipation of regulations taking effect in 2014 requiring them to cover all applicants without charging higher premiums based on a person’s medical background.

The just-enacted health law established a host of new fees and taxes that will impose burdens on individuals, employers and the entire health industry. Before Washington meddles further, it should wait to see what the new law brings with it.

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Tags: Health insurance, Health Insurance Reform, Insurance