Obama Wants Insurance Rate Hike Regulation
President Barack Obama is trying to revive his stalled national health care overhaul by taking the fight to the private insurance companies.
Mr. Obama on Monday will propose giving U.S. officials the power to limit rate hikes by health insurance companies, in a last-ditch bid to salvage his signature issue.
The proposal would give the federal Health and Human Services Department – in conjunction with state authorities – the power to deny egregious premium increases, roll them back, or demand rebates for consumers, said a White House official, speaking Sunday on condition of anonymity because details have not yet been officially released.
The United States is the only developed nation that does not have a comprehensive national health care plan for all its citizens. Many people rely on private insurance plans.
In addition, Mr. Obama will propose an additional series of measures, first brought by Republicans, to eliminate waste, fraud and abuse, which would do away with the controversial “special deal” for Nebraska, reports CBS News senior White House correspondent Bill Plante.
The deal refers to Sen. Ben Nelson, D-Neb., who, in exchange for his vote, federal taxpayers will now pay for most Medicaid expansion in Nebraska, dubbed by Republicans as the “cornhusker kickback.”
Recent insurance premium hikes of as much as 39 per cent sought by Anthem Blue Cross in California have given Mr. Obama a new argument for his sweeping health care reforms, now stalled in Congress.
The proposal for tighter oversight of private insurers, modeled on legislation proposed by Democratic Sen. Dianne Feinstein, will be part of a sweeping overhaul plan which the White House plans to post on its Web site at 10 a.m. Monday, ahead of a health care summit with congressional leaders of both parties on Thursday.
“The President believes the bipartisan discussion on Thursday will be the most productive if Democrats come to the table with a consolidated proposal – what he’s releasing today – and he hopes the Republicans will follow suit and come with their own unified proposal. He’ll be open to Republican ideas, and he hopes they’ll be open to ours,” a White House official tells CBS News.
The broader plan, likely to be opposed by the Republicans, is expected to require most Americans to carry health insurance coverage, with federal subsidies to help many afford the premiums. Hewing close to a stalled Senate bill, it would bar insurance companies from denying coverage to people with medical problems or charging them more. The expected price tag is around $1 trillion over 10 years.
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