From SAMHSA's Weekly Financing News Pulse: National Edition - September 10, 2010: On September 9, U.S. Department of Health and Human Services (HHS) Secretary Kathleen Sebelius sent a letter to America’s Health Insurance Plans’ (AHIP) President Karen Ignani, warning the insurance industry trade group not to unjustly blame premium increases on the national health care reform law. The letter warns AHIP that HHS will bar insurers that enact "unjustified" premium increases from participating in the reform law’s health insurance exchanges. Secretary Sebelius also noted that HHS will release regulations this fall regarding premium increase oversight. In related news, on September 8, the Obama Administration released an explanation of the law’s impact on premiums through the White House Blog. The posting was a response to assertions by several health insurers that they need premium rate increases of up to 20 percent, in part to cover the cost of implementing the national health care reform law. The posting suggests that the insurers’ claim is unfounded because current medical inflation is only 3.2 percent, and asserts that the law’s new consumer protection measures will only increase premiums by a maximum of 1 to 2 percent. In addition, the administration outlined the ways the law will reduce consumers’ out-of-pocket costs and empower states to oversee proposed premium increases.

View the September 10 Financing News Pulse: National Edition here (PDF | 280.93 KB)