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AHIP Statement on the Status of Health Care Reform
Date:2/22/2010

reforms, including guaranteed coverage with no pre-existing condition exclusions or health status rating paired with an effective personal coverage requirement to get everyone covered.">we advocated for robust insurance market reforms, including guaranteed coverage with no pre-existing condition exclusions or health status rating paired with an effective personal coverage requirement to get everyone covered.

“To suggest that cost containment can be achieved by singling out health plans ignores the very inconvenient truth that premium increases reflect increases in the underlying cost of medical services.

Regulating premiums won’t do anything to reduce the soaring costs of medical care. This would be like capping the prices auto makers can charge consumers, but letting the steel, rubber, and technology manufacturers charge the auto makers whatever they want.

“There is also a lot of attention on health plans’ profits. The track record shows that this is an efficient, low-margin industry whose margins are consistently lower than other sectors in health care. According to Yahoo! Finance’s latest analysis of quarterly financial data, the net profit margin for the entire health care sector is 11%, while health plans’ net profit margin is 3.4%.

“In fact, out of every dollar the nation spends on health care, less than one pe
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