Although there are several reasons why ObamaCare will raise insurance rates, Secretary Kathleen Sebelius, of the Health and Human Services Dept., is threatening "zero tolerance" for insurance companies who state the obvious. She writes:
It has come to my attention that several health insurer carriers are sending letters to their enrollees falsely blaming premium increases for 2011 on the patient protections in the Affordable Care Act. I urge you to inform your members that there will be zero tolerance for this type of misinformation and unjustified rate increases. . . . .For insurance companies that displease her, she plans to hold an inquisition:
[W]e will not stand idly by as insurers blame their premium hikes and increased profits on the requirement that they provide consumers with basic protections. [Emph. added]
Later this fall, we will issue a regulation that will require state or federal review of all potentially unreasonable rate increases filed by health insurers, with the justification for increases posted publicly for consumers and employers.For more on this, see Eugene Volokh, and Ed Morrissey.
Hat tip: Instapundit and Instapundit.
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