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Consumer Watchdog wants healthcare loophole closedPosted On Wed, April 28, 2010
Consumer Watchdog, a consumer advocacy group, is lobbying for a bill by Senator Dianne Feinstein that will close a healthcare loophole.
The consumer advocacy group believes that the new healthcare reform law will allow insurers to raise policy rates without adequate consideration. The bill was debated by a Senate committee Tuesday morning. Consumer Watchdog wants the U.S. Department of Health and Human Services to have the only authority to determine if insurance rate increases are in accordance with the law.
Consumer Watchdog's Jerry Flanagan said that "Senator Feinstein should be commended for proposing legislation to close a gaping loophole in the federal health reform law. As written, nothing in the health reform law prevents insurers from dramatically increasing rates in advance of the law's requirement that Americans must buy insurance policies or face tax fines."
Feinstein's bill would allow the National Association of Insurance Commissioners to write definitions of what unreasonable rate increases are and evaluate present state insurance regulations.
The healthcare reform bill was passed in March after much debate and with no Republican votes.
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