For Immediate Release
Phone: (202) 546-9707
Consumer Advocates Urge Tight Check on Insurance Companies
WASHINGTON - A national
consumer advocacy group urged Kathleen Sebelius, Secretary of Health and
Services, to make the most of new consumer protections for health
consumers in comments submitted on May 14 and released on Wednesday.
implemented well, these new
consumer protections will mean that families, who have long faced
rates and the threat of coverage denials, will find some measure of
returning to their health and finances,” explained Larry McNeely, Health
Care AdvocateU.S. Public
Interest Research Group. for the
recommendations come in
response to requests for public comment from the Department of Health
Services and other federal agencies on how to implement the recently
two key provisions of the federal health reform law.
set of recommendations (PDF) pertains to new federal standards
insurers to dedicate a certain percentage of their premiums to medical
purposes, not administrative expenses or corporate profits.
set of recommendations (PDF) focuses on a new procedure whereby the
government gathers information on and reviews unreasonable proposed rate
by insurers across the country.
insurance industry trade group,
America’s Health Insurance Plans (AHIP), has also weighed in on the
proposed regulations in comments
(PDF), also delivered on May 14.
“AHIP wants to
write in loopholes so
big you can drive a truck through them,” commented McNeely, “but
we’re confident that this Department of Health and Human Services knows
that letting up the pressure on the insurance industry would only hurt
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