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Feds laud early progress on healthcare reform

By Diana Manos

One month after the passage of the healthcare reform bill, federal officials say progress has been made in improving healthcare coverage for Americans.

At a press conference Friday, Health and Human Services Secretary Kathleen Sebelius said some insurance companies have agreed to comply early with measures under the Affordable Care Act, due in part to pressure from the Obama administration.

Sebelius said most Americans don't have a choice of healthcare insurance companies because markets are dominated in many areas by only one plan.

"What we can do here is shine a light (on them)," she said.

The White House has launched the Office of Consumer Information and Insurance Oversight, directed by Jay Angoff, which will be responsible for monitoring healthcare plans for unexpected high premium hikes, rescission of coverage for sick individuals and other practices the government considers unfair, Sebelius said.  

"We can watch patterns as they occur," she said. "And this can be very, very helpful for people on the ground."

Sebelius said the federal government may consider excluding unfair health insurance companies from the health exchanges that will be set up in 2014 under the new law.

Angoff said states have been responsible for regulating health insurance companies until now. Under the new law,  in 2014 "a whole new set of rules" will dictate insurance companies' policies, causing them to compete on quality and service, he said.

In the meantime, federal officials have been pushing health insurance plans to change some of their practices, Angoff said.

In a blog posted on Friday, Nancy-Ann DeParle, director of the White House Office of Health Reform, said, "(I)n just over a month, we've made significant progress in implementing the new law and making reform a reality for millions of Americans." 

"Two days ago, the insurance industry announced they will immediately follow the new rules and not wait for the new law to make (rescission of coverage) illegal," DeParle wrote. "We're glad to hear that the insurance companies are now doing the right thing – and we intend to hold them to their word."

Federal pressure has also prompted 65 insurance companies to implement coverage for children up to age 26 on their parents' plans. Under the new law, they were not required to do so until Sept. 23, DeParle said.

"This will help ensure many Americans graduating from college this spring can stay on their parents' health insurance plan," she said.