A trio of California House members expressed concern today about Blue Shield of California’s announcement of a significant increase – averaging 30 to 35 percent – in health insurance premiums for many of its policyholders, a hike the Democratic lawmakers say will force many Californians to choose between health insurance and daily necessities such as food and rent or mortgage payments.
(Yep, that would be the same Blue Shield of California that gave $15,000 to outgoing Gov. Arnold Schwarzenegger’s officeholder account late last week, days before he left office; it also gave $10,000 Monday to the California Republican Party and $3,568.83 to Democratic state Senate candidate Ted Lieu.)
Reps. Pete Stark, D-Fremont; George Miller, D-Martinez; and Henry Waxman, D-Los Angeles, said the increase underscores the danger of repealing last year’s health care reforms, as House Republicans have vowed to do.
“Thanks to health reform, for the first time these rate increases are completely transparent and posted on healthcare.gov,” Stark said in their news release. “With the increased resources from the health reform law, California can work with Blue Shield to mitigate these increases and protect consumers. Unfortunately Republicans want to immediately repeal these protections, and future reforms that will prevent rate increases like this in the future.”
Miller said Blue Shield’s announcement “just shows that the status quo is not working for California’s families.”
“And Republican repeal of health reform will only put big insurance companies in even greater control of Americans’ health care,” he continued. “The Affordable Care Act, when fully implemented, will ensure real competition and accountability so that families already stretched thin by health insurance costs can find relief. Repealing the health reform law poses a real danger to middle class families.”
The Dems noted Blue Shield clearly stated its proposed increases “cover a period of more than one year and have almost nothing to do with the federal health reform law. These rates reflect trends that were building long before health reform.” The insurer also noted health reform actually will help get costs under control in the future through initiatives that make health care more efficient, the lawmakers said.
(UPDATE @ 3:50 P.M.: Rep. John Garamendi, D-Walnut Grove, a former state Insurance Commissioner, got in on the act, too. “Today’s egregious rate hike by Blue Shield of California is further proof that we can’t trust the insurance industry to stand with consumers,” he said. “As we climb out of a deep recession, the insurance companies are kicking us back down. Fortunately, for rate increases over 10 percent, the 2010 health care reform allows the Federal government to review, question, and disclose facts to the public about the increase.”
“When Congress passed the Patient’s Bill of Rights last year, we instituted important reforms that are helping to rein in the worst abuses of the insurance industry. Next Wednesday, House Republicans will attempt to repeal these vital consumer protections,” he continued. “Even with the strong consumer protections found in the Patient’s Bill of Rights, insurers like Blue Shield are still exploiting patients for financial gain. This is an argument for more consumer protections, not less. House Republicans want to replace the Patient’s Bill of Rights with the Insurance Industry’s Right to Discriminate. Let’s not start the New Year by exposing consumers to new risks.”)
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