Insurers summoned to White House on premiums

Barack-ObamaTo give more justification to back sharp premium increases, top officials summoned health-insurance chief executives to the White House on Thursday.

It was telecast on the television was part of an attempt made by the White House to back its health overhaul as President Barack Obama is pressing Congress to out up the final legislation at his desk in the next few weeks.

One of the House's most liberal members who voted no when the House passed its version of the overhaul last November was Dennis Kucinich, and he said that he is still opposed to the step.

He added, “The latest version of the legislation would do nothing to effectively control the pace of increased premiums and increased profits that go with it."

According to the White House, it has been pointing at the private insurers following premium increases as high as 39 per cent in states like California.

Five insurance company executives including heads of UnitedHealth Group Inc. and WellPoint Inc. were called by Health and Human Services Secretary Kathleen Sebelius to request explanation on the recent rate increases.

They said that driving up of underlying cost of medical care by drug makers. medical-device makers, hospitals and other health-care companies was behind the overhaul. It won’t prove useful if premiums were lowered without addressing these costs.

If this overhaul is passed then insurers would be benefited as a majority of Americans will be needed to carry health coverage or face a fine.