"A Broken Health Insurance System Works for Insurance Companies – Not Families
"Our broken health insurance system has allowed these premium increases to occur. More than 94 percent of insurance markets in the United States are now highly concentrated. Without competition, insurers have no reason to drive costs down, and without additional choices in the marketplace, consumers have no choice but to continue to pay, or lose coverage. As premiums go up in the current economic climate, more and more families are priced out of the market altogether, making a bad situation worse.
"The “value gap” in the health insurance market is evident not just in overall premium hikes, but also in the use of those premium dollars. Over the past decade, the amount private insurance companies spent on administrative costs grew faster than the amount spent on prescription drugs, a trend that is projected to continue through the next decade. Three of the top five insurers cut the proportion of premiums they spent on customers' medical care last year, committing more to salaries, administrative expenses, and profits.
"Finally, while insurance company profits rise, these companies provide less and less security for American families. The six largest publicly held insurers insured 2.2 million fewer people in the first three quarters of 2009. If the rest of the insurance industry exhibited the same trend, 4.2 million people – or around 15,000 people per day – would have lost private insurance over this period.
Health Insurance Reform Will Fix Our Broken Health Insurance System
"Health insurance reform seeks to drive down costs, put consumer power and choice in the hands of the American people, and ensure all Americans receive the health care services they need and deserve. These efforts won’t just help our health care system – they will also help our economy. Lowering health care costs through reform could generate up to 250,000 to 400,000 jobs a year. And reform will drive down premiums and limit out-of-pocket costs that eat into the family budget.
Reform will:
"Place additional oversight on health insurance companies to ensure that people get value for the premiums they pay. Insurance companies will have to report how they spend the premium dollars they collect from their customers. If they spend too much on administrative costs and profits, they will have to give some of that money back to their customers. Insurance companies will also have to provide public justification for premium increases. Consumers can use this information to help decide whether they want to purchase a particular plan. And if insurance companies are not able to justify their premium increases, they could be barred from participating in the health insurance exchanges.
"End Arbitrary Limits Placed on Coverage by Insurance Companies. Under health insurance reform, families will no longer face lifetime limits to their benefits, nor will coverage be denied or watered down based on medical history. As a result, health insurance will provide real protection from high health care costs.
"End Insurance Company Discrimination. Health insurance reform will prevent any insurance company from denying coverage based on underlying health status, including genetic information. It will end insurance discrimination that charges families more if a family member has or had any illness, and limit differences in premiums based on age.
"Create Competition Among Insurers with a Health Insurance Exchange
