Can they do that? Insurance companies rushing to raise rates ahead of reform bill

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Insurance companies are attempting to raise rates

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And you thought the health care battles were over—turns out that the colossal effort to get a health reform bill passed earlier this year was just the opening shot in a wider war, and the second front is quickly forming. Insurance companies across the country are rushing to impose premium rate increases ahead of the implementation of the reform bill, which doesn’t fully kick-in until 2014. Californians saw this earlier in the year when Blue Cross-Anthem tried to impose a rate increase as high as 32%, after later backing down. Before the reform law establishes a new health care safety net the average consumers of health insurance are in for a rough ride: states are cutting Medicaid budgets for the poorest Americans; special extended COBRA coverage for unemployed Americans is about to run out; and rising healthcare prices and skyrocketing insurance premiums will sock the already insured. Is a health care crisis—the kind that this reform bill was supposed to head off—inevitable?

Guests:

Mollyann Brodie, vice president of the Kaiser Family Foundation; director of the Foundation’s public opinion & survey research

Jonathan Gruber, professor of economics at the Massachusetts Institute of Technology; director of the Health Care Program at the National Bureau of Economic Research


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