Administration Threatens Insurers Whose Costs Contradict Administration Theory

Health and Human Services has issued a letter to the insurance industry, promising "zero tolerance" for any insurer who dares to blame the administration for rising health insurance costs. You see, the white house has models to predict what should happen, and if it doesn't turn out that way in reality, then reality is the one in the wrong:

(Courtesy of The Volokh Conspiracy)

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....

According to our analysis and those of some industry and academic experts, any potential premium impact from the new consumer protections and increased quality provisions under the Affordable Care Act will be minimal.... Any premium increases will be moderated by out-of-pocket savings resulting from the law....

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....

Already, my Department has provided 46 states with resources to strengthen the review and transparency of proposed premiums. 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. We will also keep track of insurers with a record of unjustified rate increases: those plans may be excluded from health insurance Exchanges in 2014. Simply stated, we will not stand idly by as insurers blame their premium hikes and increased profits on the requirement that they provide consumers with basic protections....

It is my hope we can work together to stop misinformation and misleading marketing from the start....

"Nice health insurance company ya got there. Shame if anything were to happen to it . . ."