WASHINGTON, D.C. – Representative Edward J. Markey (D-Mass.), a senior member of the House Energy and Commerce Committee, delivered the following opening statement at a hearing entitled “Premium Increases By Anthem Blue Cross Health in the Individual Health Insurance Market:”
“Tomorrow at the White House, President Obama will convene a bi-partisan, public meeting with congressional leaders in an effort to move health care reform forward in our country. As the topic of today’s hearing makes clear, reform of our nation’s health care system is urgently needed – the current system is unsustainable.
“While many people think that health insurance reform doesn't matter to them because they already have health insurance, skyrocketing premiums and insurance company abuses reveal a different story – medical bills are the leading cause of personal bankruptcies in the United States today, accounting for about 60 percent of the total. And, incredibly, 80 percent of those medical bankruptcies hit people who already had insurance at the time – they were insured, but when they got sick, they discovered they were not covered. This is unacceptable.”
“It is appalling that over the coming weeks and months, when many Americans sit down to pay their bills, they will open a letter from their health insurance company informing them that their premiums will increase by 14…22…or even 39 percent.
“Last week, I spoke with a small retail business owner named Dianne Autenzio from Woburn, Massachusetts in my district. She recently got a letter from her insurance company saying that her health insurance premium is jumping by 32 percent from $494 dollars per a month to $652 dollars per a month. Mrs. Autenzio said ‘My small business is struggling to survive now-a-days and I’m expected to pay an extra $158 each month for the same health plan.’ It’s making an already difficult economic situation even worse.
“People like Mrs. Autenzio are doing the right thing and faithfully paying their health insurance premiums, but it’s becoming increasingly difficult when some insurance companies are jacking up premiums and experiencing huge profits.
“In the midst of this economic crisis, WellPoint, the parent company of Anthem Blue Cross, recorded a $2.3 billion dollar increase in annual profits - this is a 91 percent increase compared to company profits in 2008.
“Did this jump in profits mean that WellPoint covered more of their customers’ medical costs? NO, in fact their contribution decreased by 1 percent.
“Did this rise in profits lead to an appropriate reduction in premiums? NO, Anthem Blue Cross is considering raising individual health insurance premiums by as much as 39 percent.
“Sadly, Anthem Blue Cross is not an isolated case. Last week Health and Human Services Secretary Sebelius released a report showing that health insurance companies in 6 other states proposed outrageous increases in health insurance premiums.
“Thank you Mr. Chairman for holding this timely hearing. Hard working Americans are being priced out of the health insurance market by health insurance companies, as affordable health plans evaporate. I hope this hearing will help shed light on this important issue and provide momentum for the urgently-needed reform of our health insurance system.”
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