States getting money from HCR bill to help monitor and regulate insurance companies

[karynnj]

Note the success that California when they hired outside experts to examine the Anthem Blue Cross increase. This could lead to lower increases - and maybe decreases as a relatively unscrutinized industry genuinely becomes regulated by state laws.

States plan to use $46 million in grants under the nation's new health law to help curb health insurance rate increases for consumers by seeking new regulatory powers, hiring rate experts and posting insurance company financial documents on the Web, according to grant application details.

Consumer outrage over double-digit rate hikes helped spur the new federal health law, yet states remain responsible for regulating insurance rates under varying state laws. The grants, which the U.S. Department of Health and Human Services (HHS) is set to announce today, are the first in a five-year program to bolster state regulation.

States "that have no authority to disapprove or even review rates are now seeking authority to do both, and states that have traditionally kept data on rates non-public are making that information public," HHS Secretary Kathleen Sebelius said in a statement to USA TODAY.
<snip>

Only after California regulators hired outside experts to scrutinize a controversial 39% rate increase sought by Anthem Blue Cross were the company's mathematical errors revealed, she notes.

http://www.usatoday.com/money/industries/insurance/2010-08-16-1Ainsurancerates16_ST_N.htm

[karynnj]

1. No comments - even though things like this are key to controlling costs?

[SunsetDreams]

2. K&R I can get behind this, thank you!

[ProfessionalLeftist]

3. I can get behind this! n/t

[Inuca]

4. Somewhat OT and I should not complain

because it still is very low but my insurance (from work) just went up by roughly 20%.

[eridani]

5. There will be no cost control until the government actually sets rates

The insurance companies won big on devolving control to the states. An extra million per state will nowhere near be enough to put prices under control.

Recall that in Japan, France and the Netherlands, the government dictates prices and coverage for a basic comprehensive plan that covers everyone. Insurance companies may sell bells and whistles on top of that.

[TheKentuckian]

6. Spitballs to a nuclear war

[fogonthelake]

7. 46 Million could go a LONG way in provided health care to people

who need it. Single payer would avoid this problem.

[Rosa Luxemburg]

8. I wish

and they can channel some war money back into health.

[nightrain]

9. that's my thought as well... money to "regulate", but not for services!

And which private corporations are the recipients of this $46M?

[Vinca]

10. Who's going to watch the watchers?

It's a shame a whole new industry of insurance company watchers must be created when the money could be used for actual health services.

[derby378]

11. Color me unimpressed

The health insurance companies already wield a lot of influence in some of these state governments. That money will simply be used to augment their stranglehold on the average American.