Health insurers hike rates, ignore government

Consumer advocates are questioning the fairness of requiring Americans to buy health coverage under the Affordable Care Act if the government can’t control the rates insurance companies charge.

To keep prices in check, the health reform law instituted a procedure known as rate review, by which state insurance departments evaluate carriers’ proposed premium hikes of 10% or more to determine whether they are justified. But even when they deem the proposed increases excessive or unreasonable, insurance commissioners can’t always stop companies from putting them into effect.

While the reviews spared consumers $1 billion in rate hikes, the Department of Health and Human Services announced Tuesday, insurance commissioners and advocates say they would have saved consumers much more if government authorities in all 50 states could prevent insurers from going ahead with unjustified increases. Read more >>