Insurers to Sebelius: Stop Vilifying Us

"Much more needs to be done in the current legislation to address the skyrocketing cost of medical care, which is making healthcare coverage unaffordable for working families and small businesses," he adds.

In her letter to insurers, Sebelius asked for data and other information linked to the proposed rate hikes:

• If premiums increased more than estimated medical costs, she wants a description of what accounts for those differences.
• Insurers' estimates on medical cost and utilization increases, the assumptions driving these estimates, and the basis for those assumptions.
• The number of people who will be receiving premium increases, as well as the number of people who will be receiving different levels of premium increases, further broken down by characteristics including plan type, age, and sex.
• Enrollment changes in different plans since the past year.
• The number of people on whose experience the rate increase is calculated.
• Any premium rating variation including rating variation by age and health status.
• An affordability plan explaining what the company is doing to improve the affordability of healthcare, and the estimated financial impact of the company's affordability initiatives.
• An explanation of any cost containment or quality improvement efforts made that affect the increase.
• The expected medical loss ratio resulting from any premium increase.
• Information on the percentage of premium revenues spent on medical claims, disease management, quality initiatives, administrative costs, profits, and executive salaries broken down by market type.