Washington, DC -- Congressman Eliot Engel (D-NY-17) charged health insurance companies with raising their rates to pay for an expensive advertising campaign to fight health care reform, and then blaming their rate increases on reform. In 2009, health insurers gave the United States Chamber of Commerce $86.2 million to fight reform while the insurers raked in $12.9 billion in profits and dropped coverage for almost three million Americans.

“Insurance companies have already begun raising their rates on consumers following a year where they made Madison Avenue rich while fighting against improved health care for millions of Americans,” said Rep. Engel, a senior member of the House Energy and Commerce Committee’s Subcommittee on Health.

The Affordable Care Act bans some of the insurance companies’ worst practices. Insurers can no longer deny coverage to people because of a pre-existing condition or drop coverage once someone gets sick. The Act requires insurers to spend a higher percentage of their premium dollars on patient care rather than administration costs and profits. Rep. Engel is among the many who believe that a robust public option would have provided honest competition for providers leading to lower rates for consumers.

According to Bloomberg News, the insurance lobby gave money to the Chamber of Commerce in 2009 to fight the Democratic plan to reform the way health insurance is provided. This advertising campaign was designed to sway public option. This was done after the insurance companies said they would support health care reform. 

“Between insurers breaking the bank to protect the status quo, and the new Republican leadership’s promise to repeal the reform law, one thing remains clear – they are interested solely in preserving the bank accounts of insurance executives and not in advancing care for millions of Americans,” added Rep. Engel.  “Repeal of the law would result in increased costs for seniors’ prescription drugs by re-opening the Medicare Part D ‘donut hole’, would result in millions of patients with costly pre-existing conditions (such as cancer, diabetes, etc) to have their coverage yanked, would result in millions of young adults to be left on their own for coverage as they will be kicked off their parents’ plans, would result in more families declaring bankruptcy after they reach their coverage limits, and eventually lead to the ultimate goal, the destruction of the Medicare system as we know it by forcing it into a voucher system.

“I will not stand by while the health of the American people is held captive by Republican leadership and insurance companies.  I will fight any attempts at subverting the historic reform bill.  Insurance companies must resist the urge to force working families to pay for these advertising campaigns which will only lead to these families paying more for health care. Health care reform made health care more accessible and more affordable for the people who need it the most,” added Rep. Engel.

###