Don't Use Scare Tactics And Misinformation, Health Secretary Tells America's Health Insurance Plans

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Main Category: Health Insurance / Medical Insurance
Also Included In: Public Health
Article Date: 10 Sep 2010 - 12:00 PDT

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Kathleen Sebelius, US Department of Health and Human Service Secretary, has told AHIP (America's Health Insurance Plans) members to stop using scare tactics and half truths to place the blame for 2011 premium increases on the patient protections in the Affordable Care Act. Sebelius stressed that the Affordable Care Act should have a minimal impact on premiums for the majority of Americans.

In a letter to AHIP, the national association of health insurers, Sebelius accuses several health insurance carriers of sending letters to enrollees falsely blaming 2011 premium hikes on the new legislation.

There will be "zero tolerance" for this type of misinformation and unjustified increases in premium rates, Sebelius warned.

Sebelius reminds AHIP that the provisions included in the Affordable Care Act were fully supported by AHIP and its member companies.

In her letter, Sebelius wrote:

All plans must comply with provisions, such as no lifetime limits, no rescissions except in cases of fraud or intentional misrepresentation of material fact, and coverage of most adult children up to age 26.

New plans must comply with additional provisions, such as coverage of preventive services with no cost sharing, access to OB / GYNs without referrals, restrictions on annual limits on coverage, a prohibition on pre-existing condition exclusions of children (which applies to all group health plans), access to out-of-network emergency room services, and a strengthened appeals process.

And health plans that cover early retirees could qualify for reinsurance to sustain that coverage for businesses, workers, and retirees alike.

Sebelius reminds AHIP and its members that, according to her department's analysis, as well as those of some academic and industry experts, any potential premium impact from the new consumer protections and increased quality provisions under the new legislation will be negligible - at the most one or two percent.

Sebelius also wrote in the letter to AHIP:

Given the importance of the new protections and the facts about their impact on costs, I ask for your help in stopping misinformation and scare tactics about the Affordable Care Act. Moreover, I want AHIP's members to be put on notice: the Administration, in partnership with states, will not tolerate unjustified rate hikes in the name of consumer protections.

The text of Sebelius' letter to AHIP.

Written by Christian Nordqvist
Copyright: Medical News Today
Not to be reproduced without permission of Medical News Today

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