HHS Secretary Kathleen Sebelius challenged the insurance industry to put aside its misgivings about pending healthcare reform legislation and work with the Obama administration to improve upon the current system.
Speaking at America's Health Insurance Plans' national policy forum for the first time, Sebelius addressed an industry angry over the fact that they have been vilified for raising premiums and denying insurance coverage during the health reform debate.
Sebelius, who recently asked the insurance industry to
publicly justify premium hikes, told AHIP conferees that her department has been “inundated with letters” from people across the country expressing confusion and anger over the fact their benefits packages are getting smaller, yet they're still seeing dramatic premium rate increases.
These people “feel powerless to confront their insurance company” for fear of having their coverage dropped, she said. In the meantime, insurance industry profits have gone up by 56% over the past few years, she noted.
AHIP President and CEO Karen Ignagni was poised to defend her industry. Even before Sebelius gave her speech, Ignagni said that insurers were ready to “commit to massive change in the way we do business,” such as improving transparency and introducing administrative simplifications as part of reform.
“These are not half steps … not voluntary measures,” Ignagni stated.
Sebelius said she wasn't there to bad-mouth “hard-working insurance companies across the country.” But given the lack of competition and choice that exists in the insurance industry, “We have to figure out a new strategy.”
She encouraged AHIP's members to stop attacking current health reform proposals in Congress, and instead come to the table, “to discuss the parts you do” like.
“If you do, I'm confident that your customers will be happier,” the insurance industry will thrive and the nation as a whole will be stronger, she said.
Ignagni, at a news conference with reporters after Sebelius' speech, said the legislation pending in Congress “would make costs go up not down,” unless certain issues were addressed.
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