Rate Restrictions

The lead article in today’s New York Times is titled, “Obama to Seek Federal Power Over Insurers.” It describes a new item included in a comprehensive health plan from the White House regarding the power to regulate rate increases by healthcare insurers.

The proposal comes in advance of the healthcare summit at the White House on Thursday and, according to the article, makes it difficult for the Republicans to oppose without revealing corporate support for healthcare providers over the general public.

Obama’s panel would be called the Health Insurance Rate Authority and would include participants in a variety of industries including insurance executives, medical groups, economic experts, etc.

Meanwhile, other developments in the healthcare debate include a petition started by liberals in the Senate to reintroduce a public option into any new legislation. Senate Majority Leader and President Obama have sidestepped the issue, waiting to see how many Senators sign the document.

Another possiblity on the horizon remains the use of reconciliation to pass major elements of healthcare legislation. This may become even more likely if Republicans seem recalcitrant or posturing during the healthcare summit.

In my opinion, President Obama is going to come through this with flying colors. He’s had a bad freshman year, but one thing different about President Obama compared to President Bush — he learns from his mistakes. 

Based on his approach with the summit, I think President Obama will stick with this and that something major will pass and be signed into law.