Kildee Says Enormous Rate Hikes Highlight Need for Health Reform

Blue Cross/Blue Shield of Michigan sought 56% increase before settling for 22%

WASHINGTON, DC – Today, as President Obama unveiled his health care plan, Congressman Dale E. Kildee (D-MI) said that mammoth rate increases sought by state insurance companies underlie the desperate need for reform. Recently, Anthem Blue Cross of California made headlines when it announced that its individual premiums would go up at much as 39 percent. Tragically, similar situations are happening across the country. In Michigan, Blue Cross/Blue Shield sought an enormous increase of 56 percent for individual plans, but settled for a similarly shocking 22 percent increase. Congressman Kildee released the following statement:

“Throughout the debate on health reform, I have argued that access to quality, affordable health care is an undeniable American right - it should not be a luxury item only the wealthy can afford. Unfortunately, as premiums continue to skyrocket, health coverage is becoming out of reach for more and more families across the country. Recent reports of outrageously high rate increases are making it painfully clear just how critical health reform is for our country.

In Michigan, Blue Cross/Blue Shield will be increasing its rates by 22 percent. This is an enormous amount, but what is even more shocking is that the company originally sought a 56 percent hike. Too many of our working families are struggling to make ends meet as it is, and these outrageous rate increases will make it nearly impossible for many of our families to afford coverage. I have long been an advocate for health reform in our country, and these rate increases prove that there is no time to waste. I am committed to working on this health reform to ensure that it is done right and that we finally solve this problem for the American people. I urge my colleagues to join me.”