Feds reject Walker admin. attempt to make it easier for health insurers to raise rates

Milwaukee: Citizen Action has learned that the Federal government has rejected a request by Scott Walker’s Insurance Commissioner which would have made it easier for health insurance companies to increase rates paid by consumers and businesses. Last month Ted Nickle officially requested a modification of the rate review requirement from the federal government which would make it easier for insurers to increase rates by more than 10% without facing public scrutiny.

The state is responsible for enforcing key provisions of the Affordable Care Act, the national health care reform law, which require the public disclosure and review of health insurance rate increases of 10% or higher, and assess whether or not the increases are justified. Insurance Commissioner Nickel complained in his request for modification of rate review standards that insurance companies might be “artificially capping rates” to avoid the public scrutiny of rate review.

“Official documents reveal that Scott Walker’s Insurance Commissioner tried and failed to make it easier for health insurance companies to make double digit rate increases without public scrutiny,” said Robert Kraig, Executive Director of Citizen Action of Wisconsin. “It is scandalous that the public official that is supposed to look out for hard pressed consumers and businesses struggling to afford staggering health insurance premiums may actually be working hand-in-glove with the insurance industry to help them raise rates even higher. “

Last month Citizen Action of Wisconsin released a report which found that Governor Walker’s Insurance Commissioner may be frustrating the intent of new accountability and transparency standards which are part of national health care reform. Wisconsin has accepted $4.9 million from the federal government to review health insurance rate increases over 10%, hold public hearings on especially large or questionable rate hikes, and make public findings on whether or not the increases are justified. Alarmingly, the report finds that the Walker Administration has not held a single public rate review hearing, and has not found a single health insurance rate increase unreasonable, despite reviewing increases ranging from 20% to 30%.

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