What They Are Saying About Costs and Premiums
- Alwyn Cassil, Center for Studying Health System Change: “The biggest factor driving up premiums, she said, is the fast-increasing amount that is spent on medical care. And that is driven by how much doctors are paid and how many services they provide…The price hikes by doctors, hospitals and other providers hasn’t gotten enough attention, she said.” (AOLNews, Who’s the Bad Guy in Insurance Premium Hikes?, 02/21/10)
- Paul Ginsburg, Center for Studying Health System Change: “And ‘the elephant in the room that no one has focused on is providers’ power to get higher rates from insurers.’” (USA Today, Impact of bipartisan summit to be felt beyond health care, 02/24/10)
- Uwe Reinhardt, Economist, Princeton University: “‘Everyone is beating up on the insurance companies, but you may be shooting at the wrong target…’” (AOLNews, Who’s the Bad Guy in Insurance Premium Hikes?, 02/21/10)
- Alwyn Cassil, Center for Studying Health System Change: “‘…this idea that (taking) this $12billion that they have in profits … would fix our health-care spending problems is just a pipe dream.’” (Louisville Courier-Journal, Health insurers defend profits, 02/21/10)
- The Washington Post: “The president also would give the government power to block increases in health-care premiums. Given public concerns about a federal takeover of the health-care system, letting the government essentially dictate premiums hardly seems like a step in the right direction. More than half the states already require their insurance commissioners to approve rate increases in the individual or small-group markets; the House- and Senate-passed bills provide authority to review increases for insurers participating in the newly created exchanges. The White House argues that this power will help shield consumers in the four years before the exchanges are up and running, but its recent use of the insurance industry as a political scapegoat does not bode well for its responsible use of such authority.” (The Washington Post, Editorial: On health care, Mr. Obama lets the next president do the hard stuff, 02/23/10)
- Los Angeles Times: “The unfortunate reality in healthcare reform is that there is no quick fix to reducing premiums or even bringing their growth into line with inflation. The ever-increasing cost of insurance reflects the incessant growth in healthcare spending. And the solution is to reduce the supply of money for healthcare, lower the demand for medical services, or do both.” (Los Angeles Times, Editorial: Back to the drawing board, 02/08/10)
- Kim Holland, Oklahoma Insurance Commissioner: “Holland noted that state regulators are responsible for assuring the solvency of plans, not just reviewing rates. One question about the Feinstein proposal is the consequences that could occur from having the federal government only focusing on rates without specifically having responsibility over solvency. She suggested that federal denial of rate increases could create solvency concerns…Holland emphasized that rising medical costs are the underlying driver of rising premiums and that policymakers need to focus on those rising costs.” (CQ, Insurers, State Regulators Fault Federal Review of Rate Hikes, 02/22/10)
- Sandy Praeger, Kansas Insurance Commissioner: “‘If you want to keep costs under control, it’s not about managing health care premiums…it’s about managing the underlying health care costs.’” (Kaiser Health News, State Regulators Criticize Obama Plan To Create Federal Authority Over Health Insurance Rates, 02/22/10)
- Ralph Neas, National Coalition on Health Care: “‘None of the proposals yet has done enough on cost containment.’” (USA Today, Impact of bipartisan summit to be felt beyond health care, 02/24/10)
