A Block Buster Of A Rate

I almost wish Dianne Feinstein hadn't proposed this legislation.

Sen. Dianne Feinstein (D-Calif.) said Friday that she plans to introduce legislation that would bar insurance companies from enacting health insurance premium rate increases that the Secretary of the Health and Human Services deems to be unjustified.

The bill would create a national Medical Insurance Rate Authority, which would be able to prevent such increases. Feinstein's announcement follows reports that Anthem Blue Cross had intended to jack up premiums for certain policyholders in California by as much as 39 percent.

A report published Thursday by HHS found that health insurance companies have requested dramatic premium hike increases over the past year in states beyond California -- 56 percent in Michigan, 24 percent in Connecticut and 23 percent in Maine.

"This is unconscionable. It places a huge burden on people who are already struggling in these tough economic times, including the estimated 700,000 Anthem Blue Cross policyholders in California," said Feinstein in a statement. "The insurance industry reaps soaring profits by piling massive financial burdens onto consumers. According to a recent study by Health Care for America Now, America's five largest insurance companies reported record profits of $12.2 billion in 2009, an increase of $4.4 billion, or 56 percent, from 2008. And WellPoint, the parent company of Anthem Blue Cross, reported earning $2.7 billion in the fourth quarter of 2009."

Cost controls are one thing, but what I'm afraid of is that the Dems will kill this bill before the Republicans get a chance to.  I don't even see this one getting out of committee.

Better to pass a real health care bill instead and remove anti-trust exemptions from the insurers.

On the other hand, this legislation would effectively smoke out the Dems who are in the pockets of the insurance companies other than Joe Lieberman.  You know all 41 Republicans are already, so there's no need to ask.