NYTimes reports that Obama will "sternly warn" health insurers not to greatly increase rates

[brentspeak]

You can't make this stuff up. The industry is still laughing over their good fortune -- a President signing into law a requirement that every American purchase their useless, bankruptcy-inducing product.

http://www.nytimes.com/2010/06/22/health/policy/22health.html?hp

As Law Takes Effect, Obama Gives Insurers a Warning


By KEVIN SACK and SHERYL GAY STOLBERG
Published: June 21, 2010

WASHINGTON — President Obama, whose vilification of insurers helped push a landmark health care overhaul through Congress, plans to sternly warn industry executives at a White House meeting on Tuesday against imposing hefty rate increases in anticipation of tightening regulation under the new law, administration officials said Monday.

The White House is concerned that health insurers will blame the new law for increases in premiums that are intended to maximize profits rather than covering claims. The administration is also closely watching investigations by a number of states into the actuarial soundness of double-digit rate increases.

snip

The law does not grant the federal government new authority to regulate health care premiums, which remains the province of state insurance departments. But with important provisions taking effect this summer and fall, the Obama administration has repeatedly reminded insurers — and the public — that it will expose industry pricing to what the health secretary, Kathleen Sebelius, has called a “bright spotlight.”

snip

But for all of Mr. Obama’s browbeating, the new health care law stopped short of giving the administration the power to reject or limit rate increases. Instead, it established the annual reviews, starting next year, and makes available $250 million in grants to states to implement the review process.

[n2doc]

1. The "John Conyers" method of governing n/t

[Enrique]

2. if the private insurance rates are too high, I'm going with the public option

oh, that's right, I forgot...

[gateley]

3. Oops. Too late. nt

[Nite Owl]

4. There are no cost controls in the bill

that was passed. At least not for the industry, for the people it means you have to buy a lesser plan and hope you don't need to use it. They won so why should they care about that 'bright spotlight' now?

[msongs]

8. the cost controls are imposed on sick people - if ya got no $$ ya got no expenses nt

[derby378]

5. Ooooh, scary...

I'm the CEO of UnitedHealthGroup. I just responded to Obama's warning by buying out Rahm Emanuel and half of the Cabinet. As the kids say nowadays, What? Now peel me another grape, Jeeves...

[La Lioness Priyanka]

6. LOL

[polichick]

7. Well, if prices go up we'll have the perfect opportunity to implement a public option. nt

[VMI Dem]

9. Funny.

[niceypoo]

10. Not sure the Health Insurers care about warnings

If there are billions to be made, they will chase the money.

[Catherina]

11. What's with all the stern warnings after capitulating to their demands? n/t

[cherokeeprogressive]

12. Advocating Fiercely against rate increases...

This should work out in someone's favor (purposely ambiguous).

[dflprincess]

13. Or what?

He'll send them a strongly worded letter?

Is Obama doing this to "scare" the insurance companies or because he hopes the public will just see the headline and be foolish enough to think he's doing something?

[Scarsdale Vibe]

14. The Secretary of HHS determines who can be in the exchanges.

Public pressure also works, the rate increases by Anthem Blue Cross in California were severely curtailed.

[truebrit71]

15. Ooooooooh..what's next? The threat of harsh language?

:eyes:

[democracy1st]

16. LOL what a joke!

[MadHound]

17. Like that's going to work

The middle class is screwed in this country, thanks to this so called "reform".

[leftygolfer]

18. i have to believe in the President

it's the only hope i have of ever getting any healthcare now. perfect or not, this bill is all i have