Health Insurers Finally Get Some Oversight

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By KATHLEEN SEBELIUS

In the last two weeks, my department has been accused of "thuggery" (this editorial page) and "Soviet tyranny" (Newt Gingrich). What prompted these accusations? The fact that we told health-insurance companies that, as required by law, we will review large premium increases and identify those that are unreasonable.

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These critics seem to believe that any oversight of the insurance industry is too much, and that consumers would be better off in a system where they have few rights or protections.

Over the past decade, Americans have seen what happens when insurance companies have free rein. The cost of health insurance has more than doubled, while millions of hard-working Americans lost their coverage or drained their savings to keep up with premiums.

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Under the Affordable Care Act, 46 states have already received grants to beef up their premium-review and oversight capabilities. And additional funding is on the way.

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We are already seeing this new level of accountability pay off. Last week, North Carolina's largest insurer announced a "one-time refund that will return $155.8 million to more than 215,000 individual Blue Cross Blue Shield customers as a result of the Affordable Care Act." This rebate will put an average of $720 back into the pockets of each of those policyholders.

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A day after Blue Cross Blue Shield's announcement, seniors with private Medicare plans got some news that most Americans haven't heard in years: Their premiums will actually go down 1% next year, even as many of them enjoy better benefits.

The Affordable Care Act is bringing some basic fairness to our health insurance market. So when I learned that a handful of insurers around the country are blaming their significant rate increases on the new law—even though the facts show that the impact of the law on premiums is small, just 1% to 2% declining over time—I let them know that we'd be closely reviewing their rate hikes.

http://online.wsj.com/article/SB10001424052748704082104575515851336184716.html