Asking the Big Health Insurers About their Finances Before Enacting Health Reform Seems Right to Me

Posted August 24th, 2009 by Thao Nguyen

By Lisa Codispoti, Senior Counsel, National Women’s Law Center

Besides the US Chamber of Commerce, anyone out there feeling at all bad about the US House Energy & Commerce Committee asking large national health insurers about their finances? Certainly not I, especially after what we learned about the Wall Street bail out and big institutions that received billions in federal bailouts who in turn were handing out bonuses and continuing with other corporate spending that certainly raised the eyebrows – and ire- of the American public.  Various health reform proposals will no doubt have a financial impact on the insurance industry (ie: by imposing a requirement that all people obtain health insurance and providing subsidies for those who can’t afford it).

Representatives Waxman and Stupack have it right: before health reform creates a “bonanza” for the health insurers, let’s at least understand their current spending and business practices.  It seems fair to me to ask the health insurers about their profits, salaries and bonuses for employees earning over $500k, how much they’re spending on retreats, etc.

All seems reasonable to me.  Of course, the insurers had to rely on the Chamber of Commerce to do their complaining about the request.  Give me a break.  There are at least a few other things that come to mind about the need for health reform that the Chamber could complain about.  Wouldn’t it be nice to hear the Chamber saying they were “deeply troubled” about the burden businesses will face if family health insurance premiums nearly double by 2020 if we do nothing?  Or the burden employers face today given the current insurance industry practice of charging employers with more women and/or older workers more for the same insurance coverage ?