The Obama Administration is pushing to accelerate health insurance industry adoption of certain provisions of healthcare reform in advance of the deadlines required by the new law, according to George Olsen, health policy expert and president of the law firm Williams & Jensen. “They want to show the public that this thing is actually working and providing some benefits” before taxes and fees kick in, Olsen said during a conference call sponsored by Credit-Suisse. Specifically, he pointed to efforts to accelerate adoption of regulations concerning rescissions, unreasonable premium rate increases, minimum medical cost ratios, and allowing young adults to remain on their parents’ insurance policy up to age 26.
For example, a Reuters report suggesting that WellPoint was targeting women with breast cancer (see prior post) so that the company could find pretexts for canceling their health insurance “touched off a firestorm here in Washington,” Olsen said, with HHS Secretary Sebelius, House Speaker Pelosi and key Congressional Committee chairs calling for an end to the practice. The insurance industry quickly fell in line, with America’s Health Insurance Plans stating in a letter to key House Democrats its members were committed to implementing the new standards in May 2010 — four months ahead of schedule. AHIP also noted that its members are already allowing young adults to stay on their parent policies in advance of the September deadline.
Olsen also pointed out that Sebelius formally sought public comment in advance of the creation of rules concerning federal annual review of unreasonable rate hikes by health plans. “The Secretary is trying to jump out in front and accelerate the process,” he said, adding, “The Administration is very concerned about premium increases” prior to the creation of health insurance exchanges in 2014. Olsen also pointed out that Sebelius asked the National Assn. of Insurance Commissioners to outline by June 1, 2010 — six months earlier than required by law — a uniform definition of what constitutes medical costs for use in calculating minimum medical cost ratios required by the legislation.
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of course they are given current political environment leading to fears that after november elections new congress will thankfully try to repeal obmamacare