Health Insurance companies View of Health Care Reform

New York Times
Excerpts from
REED ABELSON
Published: August 4, 2009


A major shift in Insurance companies approach to Health Care Reform


There has been a striking change for the insurance industry, long an opponent of health care reform. Insurers have agreed to abandon some of their most controversial practices, like denying coverage to applicants with pre-existing medical conditions.

Karen M. Ignagni, the industry’s chief lobbyist, personally pledged to President Obama that insurers would not stand in the way of a sweeping overhaul this time.

For a while, it seemed to be working — then the insurance industry re-emerged as Washington’s favorite target. “Villains,” Nancy Pelosi, the House speaker, called them. And Mr. Obama derided the industry for pocketing “windfall profits.”

As the debate heats up, Ms. Ignagni is facing her toughest test. After winning concessions, and consensus, from many insurance companies with competing interests, she now has to keep them together as the assault on the industry picks up. Her strategy has been to push for changes her members can live with.

Despite her efforts to ally the industry with Washington, however, it risks being thrust in the same role it played 15 years ago when it helped derail reform.

When the president called on Ms. Ignagni at a White House meeting in March, she was quick to reassure him, “You have our commitment to pass health reform this year.”

But the talk has become increasingly unfriendly of late, as the president and Congress have latched onto the insurance industry’s failings.

Even as she fends off industry criticism, Ms. Ignagni must try to preserve the current consensus over what changes insurers are willing to make.

Ronald A. Williams, Aetna’s chief executive said that they came to their current position after significant discussion, in contrast to the early 1990s, and that despite the current tenor of the debate, they “intend to remain at the table,” .