WASHINGTON, DC (May 13, 2010, 2010) – Rep. Jan Schakowsky (D-IL) released the following statement in response to today’s report by Health Care for America Now! The report showed that health insurance companies have seen a surge in profits this quarter – and over the last year – to the benefit of the companies’ bottom lines and to their investors, yet American consumers have suffered.

“Today’s report from Health Care for America Now! showing that insurance companies are raking in record profits at the same time that fewer American consumers are being covered—and while those who are still covered are getting skimpier benefits—is enlightening, though sadly not at all surprising.

“The real takeaway from all of this is that we’ve absolutely got to pass federal insurance rate review legislation in order to hold these insurance companies accountable and protect American consumers. I have introduced the Health Insurance Rate Authority Act, along with Sen. Dianne Feinstein in the Senate, to do just that. Over 60 organizations have joined together to support our legislation including The American Cancer Society Cancer Action Network, the Consumer Federation of America, and AFL-CIO.

“Today’s report shows that in the first quarter of 2010, the five largest for-profit insurers raked in a combined net income of $3.2 billion, which is a 31% increase over last year. Wellpoint, which is turning out to be the poster child for unbridled greed, had the biggest take, $877 million this quarter. That’s a 51% profit increase over the same period last year. On top of that we have Wellpoint’s CEO, Angela Braly, boosting her compensation by over 50% with a huge bonus.

“This is totally unconscionable, as I’ve got constituents in my district of Illinois who are facing a 60% rate hike this year and California was going to see 39% hikes in their premiums. While Americans are facing double-digit rate increases, these big insurance companies are simultaneously cutting their spending on actual medical care for consumers, according to today’s report. They’re now spending an average of 81 cents on the dollar on medical care, meaning the rest goes toward profits, bureaucracy and executive compensation.

“HCAN’s findings provide further proof that we desperately need real protection from the greed and profiteering of these big insurance companies. Americans simply cannot wait any longer.”