News Release FOR IMMEDIATE RELEASE 
 
 September 9, 2010 Contact: HHS Press Office 
 
 (202) 690-6343 Sebelius calls on health insurers to stop misinformation and unjustified rate increases Affordable Care Act will help lower costs and crack down on unjustified rate increases WASHINGTON, DC – U.S. Department of Health and Human Services Secretary Kathleen Sebelius wrote America’s Health Insurance Plans (AHIP), the national association of health insurers, calling on their members to stop using scare tactics and misinformation to falsely blame premium increases for 2011 on the patient protections in the Affordable Care Act. Sebelius noted that the consumer protections and out-of-pocket savings provided for in the Affordable Care Act should result in a minimal impact on premiums for most Americans. Further, she reminded health plans that states have new resources under the Affordable Care Act to crack down on unjustified premium increases. The text of Sebelius’ letter is below. Ms. Karen Ignagni 
 
 President and Chief Executive Officer 
 
 America’s Health Insurance Plans 
 
 601 Pennsylvania Avenue, NW 
 
 South Building, Suite 500 
 
 Washington, DC 20004 Dear Ms. Ignagni: 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. The Affordable Care Act includes a number of provisions to provide Americans with access to health coverage that will be there when they need it. These provisions were fully supported by AHIP and its member companies. Many of the legislation’s key protections take effect for plan or policy years beginning on or after September 23, 2010. All plans must comply with provisions such as no lifetime limits, no rescissions except in cases of fraud or intentional misrepresentation of material fact, and coverage of most adult children up to age 26. New plans must comply with additional provisions, such as coverage of preventive services with no cost sharing, access to OB / GYNs without referrals, restrictions on annual limits on coverage, a prohibition on pre-existing condition exclusions of children (which applies to all group health plans), access to out-of-network emergency room services, and a strengthened appeals process. And health plans that cover early retirees could qualify for reinsurance to sustain that coverage for businesses, workers, and retirees alike. 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. We estimate that that the effect will be no more than one to two percent. This is consistent with estimates from the Urban Institute (1 to 2 percent) and Mercer consultants (2.3 percent) as well as some insurers’ estimates. Pennsylvania’s Highmark, for example, estimates the effect of the legislation on premiums from 1.14 to 2 percent. Moreover, the trends in health costs, independent of the legislation, have slowed. Employers’ premiums for family coverage increased by only 3 percent in 2010 – a significant drop from previous years. Any premium increases will be moderated by out-of-pocket savings resulting from the law. These savings include a reduction in the “hidden tax” on insured Americans that subsidizes care for the uninsured. By making sure insurance covers people who are most at risk, there will be less uncompensated care, and, as a result, the amount of cost shifting to those who have coverage today will be reduced by up to $1 billion in 2013. By making sure that high-risk individuals have insurance and emphasizing health care that prevents illnesses from becoming serious, long-term health problems, the law will also reduce the cost of avoidable hospitalizations. Prioritizing prevention without cost sharing could also result in significant savings: from lowering people’s out-of-pocket spending to lowering costs due to conditions like obesity, and to increasing worker productivity – today, increased sickness and lack of coverage security reduce economic output by $260 billion per year. 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. Americans want affordable and reliable health insurance, and it is our job to make it happen. We worked hard to change the system to help consumers. It is my hope we can work together to stop misinformation and misleading marketing from the start. Sincerely, Kathleen Sebelius 
 
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 Note: All HHS press releases, fact sheets and other press materials are available at http://www.hhs.gov/news. Follow HHS on Twitter @HHSgov and sign up for HHS Email Updates. Follow HHS Secretary Kathleen Sebelius on Twitter @Sebelius . ||||| Former House Speaker Newt Gingrich on Saturday said Republicans should try to oust Health and Human Services Secretary Kathleen Sebelius because she was acting “in the spirit of the Soviet tyranny” and represents “left-wing thought police.” 
 
 Gingrich, speaking at the Values Voter summit in Washington, told an audience of social conservatives that Sebelius’s letter instructing insurers not to blame premium hikes on the new health care law was so egregious she deserved to be forced out. 
 
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 “When Secretary Sebelius said the other day she would punish insurance companies who told the truth about Obamacare, she was behaving exactly in the spirit of the Soviet tyranny,” he said. “If she is going to represent left-wing thought police about Obamacare, she should be forced to resign by the new Congress.” 
 
 “This idea that we the people have to tolerate some bureaucrat being paid with our taxes to dictate free speech to us, should end in January by the Republican Congress zeroing out her office and saying they’ll be glad to pay for it when there’s somebody there who recognizes the rights of the American people,” he said. 
 
 Gingrich also attacked the establishment in his own party, and he credited Sarah Palin and Sen. Jim DeMint for tea party darling Christine O’Donnell’s upset win in Delaware earlier this week over Rep. Mike Castle. 
 
 “Sen. Jim DeMint and Gov. Palin deserve enormous credit,” Gingrich said. “I’ll let you decide whether this is the DeMint-Palin inspired movement or the Palin-DeMint inspired movement.” 
 
 Gingrich said the GOP establishment — which he once helped lead as House speaker in the 1990s — is in “a state of shock,” and he urged party leaders to embrace O’Donnell and reject the write-in candidacy of Sen. Lisa Murkowski (R-Alaska), who lost her GOP primary last month. 
 
 “I would say that Sen. Murkowski is fundamentally cheating. If she wanted to run as an independent, she should have,” he said. “And I would beg Mike Castle to endorse Christine O’Donnell because she won fair and square.” 
 
 Gingrich also warned of the influence of sharia, the Islamic legal code, and what he called “radical Islamists” in the United States. 
 
 “I am totally opposed to any effort to impose sharia on the United States,” he said. “And we should make clear to Justice [Stephen] Breyer and Justice [Elena] Kagen who both seem confused on this topic that no judge will remain in office who tries to use sharia law to interpret the American Constitution,” he said.
– At least he didn't invoke Hitler: Newt Gingrich today accused health secretary Kathleen Sebelius of "Soviet tyranny" and said she embodies the "left-wing thought police" because of Obamacare, reports Politico. His money quote at the Values Voter summit in DC: “When Secretary Sebelius said the other day she would punish insurance companies who told the truth about Obamacare, she was behaving exactly in the spirit of the Soviet tyranny. If she is going to represent left-wing thought police about Obamacare, she should be forced to resign by the new Congress.” Gingrich was referring to this letter sent by Sebelius to insurers warning them to stop "falsely blaming premium increases" on the new health legislation. She said there would be "zero tolerance" of it. Elsewhere in his speech, Gingrich lavished praise on Sarah Palin and Jim DeMint for the Tea Party's successes. To catch up on his recent charged comments about President Obama's "Kenyan" world view, click here.