File it under “Had to Happen.” As healthcare reform commences, those entrenched parties who benefited from the status quo have to put up a fight against change. Sure enough, Kathleen Sebelius, HHS Director, warned in a letter to the chief lobbyist for health insurers, Karen Ignagni, that “unjustified” rate hikes on applicants/policy holders would not be tolerated. Ignagni dismissed the caveat, saying rising premiums result because of the “economics” of benefits’ costs. The cat fight begins!
Find more details about the issue from Janet Adamy’s article at the Wall Street Journal and let us know what you think. Is “intrusive” government policy to blame for any subsequent rate hikes, or is it the inability of insurers to return a smaller dividend to shareholders the cause? Feel free to respond below.