Many experts agree that focusing solely on health insurance premiums while ignoring underlying medical cost drivers will not make health care coverage more affordable. The public policy discussion needs to be enlarged to focus on the soaring cost of medical care that threatens our economic competitiveness, public safety net and the affordability of coverage.
Premium review must adequately factor in all of the components that determine premium rates, including geographic variation, the cost of new benefit mandates and the impact of younger and healthier people dropping coverage. Capping premium increases without looking at the underlying components is similar to capping the prices auto makers can charge consumers, while allowing the steel, rubber and technology manufacturers to charge the auto makers whatever they want.
States are best suited to review premiums because they have the experience, infrastructures and local market knowledge necessary to ensure that consumers are protected and health plans are solvent. The federal government has neither the capacity nor the expertise needed to make these assessments.
Any review of premiums should be based on objective actuarial standards to avoid a politicization of the rate review process that will cause disruption for consumers and financial instability throughout the system.
Latest Documents
MEMORANDUM TO: Louisiana Interested Parties FROM: Dianne Bricker, Regional Director, State Advocacy dbricker@ahip.org, 202-861-6378 Aaron Tucker, Senior Legislative/Regulatory Analyst atucker@ahip.org, 202-778-1159 DATE: March 14, 2012 RE: 2012 Legislative Session Convenes ______________________________________________
Reports/Fact Sheets/Briefs/Talking Points
|
State
|
03/14/12
Comments and Letters
|
09/06/11
Washington, DC – America’s Health Insurance Plans’ (AHIP) President and CEO Karen Ignagni today released the following statement on the rate review rule released by the Department of Health and Human Services: “Focusing on health insurance premiums while ignoring underlying medical cost drivers will not make health care coverage more affordable for families and employers. The public policy discussion needs to be enlarged to focus on the soaring cost of medical care that threatens our economic competitiveness, our public safety net, and the affordability of health care coverage.
Press Releases
|
Strategic Communications
|
05/19/11
AHIP’s letter to HHS on the proposed rate review regulations states that rate review should continue to be done at the state level and should take into account all of the factors driving premium increases, including soaring prices for medical services, new benefit mandates, and changes in the risk pool.
Comments and Letters
|
02/22/11
America’s Health Insurance Plans’ (AHIP) President and CEO Karen Ignagni today released the following statement on the proposed rate review rule released by the Department of Health and Human Services
Press Releases
|
Strategic Communications
|
12/21/10
This Hay Group presentation provides an overview of how health insurance premiums are calculated and the factors that contribute to premium increases.
Other Reports/Papers
|
07/20/10
AHIP’s letter to HHS on the proposed rate review regulations states that rate review should continue to be done at the state level and should take into account all of the factors driving premium increases, including soaring prices for medical services, new benefit mandates, and changes in the risk pool.
Comments and Letters
|
05/14/10
AHIP President and CEO Karen Ignagni testified before the Senate HELP Committee on the soaring cost of medical care and its impact on health insurance premiums.
Testimony / Statements
|
04/20/10