$1 Million Grant Would Bolster Industry-favored Schwarzenegger Plan, Help Kill Actual Regulation of Insurance Companies
Washington, DC — Consumer Watchdog today asked Health and Human Services Secretary Kathleen Sebelius to reject Gov. Arnold Schwarzenegger’s request for a $1 million grant under the new health reform law. The grants are intended to help states strengthen regulation of health insurance companies, but the Schwarzenegger administration’s weak plan would kill proposed protections against unjustified rate increases, Consumer Watchdog charged.
In a brief letter to Sebelius, the nonprofit, nonpartisan consumer advocates charged that the $1 million grant would in effect support legislation intended to prevent regulation of insurance rates. The
Insurance fraud can be an insidious thing, and makes it difficult for insurers to continue offering discount auto insurance.