WSJ: AHIP Cries "Uncle" and HHS/Dems Win (updated)

[ProSense]

WSJ: AHIP Cries "Uncle" and HHS/Dems Win

by calchala

As to the recent uproar between AHIP and HHS, we have a winner, and the winner is HHS Secretary Kathleen Sebelius.

Flap on Children's Pre-existing Conditions' letter settled

Looks like AHIP has decided to throw in the towel in regards to complying with the regulations saying they'll agree to the regulations.

Unfortunately the document is blocked by the Journal's "pay-for" section.

Here's what they released:

Insurers said they would comply with regulations the government issues requiring them to cover children with pre-existing conditions, after a dispute with lawmakers over interpretation of the new health-care legislation.

The Obama administration has made near-immediate coverage for sick children a priority in its health-care overhaul. But shortly after the bill's passage last week, insurers contended that the law didn't require them to accept sick children until 2014.

This is after HHS Secretary gave them a warning shot, that should they fail to comply with these regulations, they don't get access to that group of 40 million uninsured Americans.

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Updated to add:

In a letter to Health and Human Services Secretary Kathleen Sebelius, the industry's top lobbyist said insurers will accept new regulations to dispel uncertainty over a much-publicized guarantee that children with medical problems can get coverage starting this year.

Quick resolution of the doubts was a win for Obama — and a sign that the industry has no stomach for another war of words with a president who deftly used double-digit rate hikes by the companies to revive his sweeping health care legislation from near collapse in Congress.

"Health plans recognize the significant hardship that a family faces when they are unable to obtain coverage for a child with a pre-existing condition," Karen Ignagni, president of America's Health Insurance Plans, said in a letter to Sebelius. Ignagni said that the industry will "fully comply" with the regulations, expected within weeks.

The industry's response followed a sternly worded letter from Sebelius earlier in the day. In it, the administration's top health care official tried to put an end to questions about the law's intent and wording.

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[Cha]

1. Somebody doesn't like this

news but I do.

[JanusAscending]

2. Me too!!

ProSense is always on top of these things! Thanks Pro!!

[JanusAscending]

3. P.S.

kicked and recommended!

[IndianaGreen]

4. and the premiums will be....

That's the crux of the matter, isn't it?

[Aramchek]

7. you are beyond help

it's pitiful that you'll even rag on kids getting coverage.

[AllyCat]

9. I don't think anyone except the Cons are ragging about kids getting covereage

but the devil is in the details. From other reports (and I'll find many a link from "mainstream media" if needed), the insurance companies are trying to misunderestimate the new law to say that not only do they not have to cover these kids, they can increase rates for them to cover the cost if they want to.

So, I have to agree with IndianaGreen... at what price will they insure them? That is a reasonable question to ask at this point that is not mentioned in the links by OP. There probably is no info available at this time. Who knows?

Maybe that has been all taken care of with this strongly worded letter.

I want kids to have coverage. I don't think anyone here doesn't want them to have it. It is one of the few good things about this new law.

But I don't trust these insurance companies one iota...they'll be back with more nonsense I'm sure. It's their way.

[IndianaGreen]

10. and there is no public option to keep the health industry in check

I expect higher co-pays and deductibles.

[ProSense]

12. There will be a non-profit plan administered by the government to

keep the industry in check. That's huge.

[AllyCat]

15. In 4 years. Not so huge.

[grantcart]

5. Insurance companies have to worry about being black balled from the state exchanges

the government will have all of the marbles and the insurance companies will have to be nice if they want to play.

[IndianaGreen]

11. Those exchanges will be run by the states, no?

I wouldn't put too much faith is several states participating in exchanges.

[quiet.american]

6. I knew it!

They didn't have a leg to stand on.

Add to that, being blacklisted from the upcoming Exchange(s).... I knew it!

[Clio the Leo]

8. Go get 'em Kathleen!!!!

Or to borrow a phrase ... KATIE BAR THE DOOR!

[SpartanDem]

13. Nice job

putting these jerks back in their place.

[TomCADem]

14. This Could Have Been Used To Justify "Temporary" Medicare Coverage For Children...

...with pre-existing conditions until 2014. If the insurance companies were going to insist on holding out to 2014, then we could have passed a "temporary" Medicare bridge until 2014, and dare Republicans to vote against children with pre-existing conditions.

[bornskeptic]

16. The insurance companies would love that.

They wouldn't have to deal with the risk involved in providing basic insurance for sick kids, and the parents would be under pressure to buy a supplemental policy to protect against catastrophic out-of-pocket costs.

[Phx_Dem]

17. Hurting kids is never a good political strategy. n/t

[Cleobulus]

18. Are people seriously this naive?

This is a PR move, the last thing the insurance companies want is to look like assholes to the American public, but that doesn't mean they will behave like little angels from now on. They caved on this, wait until people aren't looking, 6 months from now, when policies are going to be issued, I can see it now, the Insurance companies, to comply with the law, will "cover" that kid that has cancer, but won't pay for inject-able drugs in the policy, etc.

[denimgirly]

19. So even the Insurers know the Mandated 40 million is Sweet...

i am a bit surprised they would crack and follow regulation since their goal is to deny not give it. I am guessing every descent part of the bill will be contested as the years go by

[Uzybone]

20. Well that didn't take long