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Today on this program we began a discussion into why the new health care law may not prevent health insurance premiums from spiking.
Basically a loophole in the law that prevents the federal government from doing it and states also.
Without the power to do so we had to cut it short because of Tim Geithner and -- -- -- also our guests who.
Happily agree to come back joining us now from Washington.
The helicopter from the stands out the a congressman first thoughts are about that Tim Geithner sort of stole the show promise from a bowl but that we appreciate you being willing to come back.
-- tell how to be -- thank you you're welcome tough talk was about your plan.
To I don't know if you wanna -- is it fair to call -- a a loophole.
Well it does allow the insurance companies to raise their rates and we're seeing it 405060%.
Beyond the place that people can actually afford -- this legislation.
Would give the federal government and the State's only there 26 states that don't have any authority to modify rates whatsoever.
So would give those states and the federal government the chance to do that it hit.
The rates have gone up to excessively it would require rebates to consumers.
From those excessive rate so.
-- regulation is something that 24 states are doing right now.
And this would not interfere what with what the states are doing in fact it would allow them to go further.
But the federal government would be able to modify rates and worsening -- shamelessly these rates go left so very very -- They're saying that they need to do -- for profits but we've never seen in the insurance industry -- profitable as it is right now.
The insurance companies also say that -- the cause.
Of rising health care costs that they need to raise.
Rates and premiums because of the health care costs in south that the federal government gets the power to essentially cat.
How would that not then create shortages it's like if you cap gas at a dollar.
But everybody can use as much gas then you are going to wind that was shortages.
-- surely that's what the insurance industry is saying.
And when those rates would be modified.
It would also take a look at the profitability of the company.
How much money are they using port administration.
So would certainly taken to consider generation those those problems than those issues.
We're not out to break the insurance companies -- to drive them out of business what we're saying is that companies like WellPoint -- -- -- additional.
Two billion dollars last year and raise their CEO's salary.
That we have a right to question those insurance rates if you can that this would.
But had no no finish your thought now.
Ask -- has to collection.
Well I think I think what I think what Americans are feeling is that there are being gouged by the insurance companies who are doing more -- well right now.
And that's the point of this legislation.
Highly excessive rate increases.
Well then define what a fair profit is because the largest insurance companies in this country.
Their profits last year were less than 1% of what the whole country spends on health care.
Well -- -- that union as a percentage of what the out on how to told us are spending not total health care spending is less than 1%.
In profits but what happens.
I -- it doesn't that doesn't sound right to me that that may be that may be absolutely true but that what we have to look at each company.
And when they come in and tell ordinary consumers.
We'll have a preexisting condition or a small business.
That we're gonna raise your rates will be the rate of medical inflation -- -- -- the rate of medical inflation.
That I think we want to take a closer look at that and see if they aren't making excessive profits and using excessive amounts -- administration.
And I think most consumers would agree with that that some -- -- rate increases.
I simply unbearable and drive people particularly the most sick people.
Out of the insurance market altogether I think that's their -- frankly.
Illinois represented genachowski thank you very much for coming back on have to make -- -- -- yesterday have a nice day thank you very much.
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