Earlier this year, when President Obama signed the Patient Protection and Affordable Care Act into law, we were a part of an historic shift in America’s vision of government. After decades of fighting, we won coverage for 32 million more people, and a sentiment among our communities that it is the responsibility of our government to respond to the needs of its people.
But winning health care reform was only the first step.
Here in New York, over the past decade, health insurance premiums have skyrocketed – up 92%, while wages have increased by only 14%. According to a recent study by Health Care for America Now, America’s five largest insurance companies reported record profits of $12.2 billion in 2009, an increase of $4.4 billion, or 56%, from 2008.
These outrageous rate increases have forced too many New Yorkers to drop their health insurance or face bankrupting financial hardship.
Years of hard work culminated late Monday night, when we won a major victory in making health insurance more affordable. Both the State Senate and the Assembly passed a bill that requires health insurance companies to get approval of their proposed rate increases from the Insurance Department before those rate increases go into effect. On Wednesday, the Governor signed it into law.
As a result, New York will not see cases like the 39% premium increase put forth by Wellpoint’s subsidiary, Anthem, in California. Some insurance companies in Pennsylvania have raised premiums 50% – all while health care spending has only increased 5%-10%. These increased rates are clearly not about passing on increased spending incurred by Americans.
Now, the State Insurance Department will have the authority to reject or modify any rate hikes that are unreasonable, excessive or unfairly discriminatory. The public would also be allowed to submit comments to any proposed rate hikes.
Senator Neil Breslin, Chair of the Insurance Committee, demonstrated true leadership as he guided this legislation through the Senate. Along with Senator Breslin and our friends at Health Care for All New York, we worked to overcome the misguided and corrupt special interests that place insatiable profit over country and over decency. Every meeting with a legislator, phone call, fax, and email helped to make our message loud and clear. You helped make it happen.
Insurance companies will try these jaw-dropping, cold, and desperate tactics again, especially as the country begins to phase in the tenets of our hard won health care reform.
This new law is a victory for the people of New York over big money insurance lobbyists. This week, our progressive values for a better New York beat out those who care most about corporate profits.
When we fight, we can win. Let’s keep fighting.