Here is a comment from Ethan Rome, executive director of Health Care for America Now (HCAN), on the health insurance premium rate review rule announced today by the Department of Health and Human Services:

“The rate review rule puts health insurance companies on notice that slamming consumers and small businesses with unjustified, double-digit premium rate increases will not be tolerated. These regulations will help states shine a light on the data the insurance companies manipulate to justify unreasonable rate hike year after year.

“The days of insurance companies running roughshod over consumers and jacking up our rates whenever they want are over. The new rate review regulation represents a key step toward finally ending the insurance companies’ stranglehold on our health care.

“We encourage states to step up and aggressively scrutinize proposed rate hikes and provide consumers and businesses much needed relief from price gouging.

“The Affordable Care Act is already reducing rates around the country. In Connecticut, the new health law prompted Aetna to voluntarily roll back rates by an average of 10% for some customers, demonstrating that the law is a powerful tool to hold the industry accountable and give rate relief to hard-pressed families and businesses. In California, state regulators have successfully challenged unreasonable premium increases, yielding huge savings for consumers and small businesses.

“These rules come at a crucial time. From 1999 to 2009, health insurance companies raised premiums a staggering 131 percent – three times the growth of wages and four times the rate of overall inflation. Last week the New York Times reported that the health insurance industry this year is enjoying record earnings while millions of Americans get less medical care. The for-profit health insurance has delivered a phenomenal 16.1% return on equity as of today. By that measure, health insurers are ranked fourth highest of the 16 industries in the health care sector. They deliver a higher return for investors than cell phone companies, beer companies, mortgage companies, life insurance companies, TV broadcasters, drug store companies or grocery stores.”

-30-

Health Care for America Now is a national grassroots coalition of more than 1,000 organizations in 46 states representing 30 million people. HCAN led the fight over the past two years to win passage of health reform and to keep Congress from being steamrolled by corporate special interests.