Report: Obama to urge rate increase curbs

WASHINGTON, Feb. 21 (UPI) -- U.S. President Barack Obama plans to propose allowing the federal government to block some health insurance premium increases, administration officials said.

Obama is to release details Monday on his proposal for health insurance reform, four days ahead of a scheduled White House meeting on healthcare with Democratic and Republican members of Congress.

Citing administration officials, The New York Times reported Sunday the president's proposal will include provisions intended to tighten regulation of health insurance costs.

The report comes after members of Congress and the public expressed outrage at an announcement by Anthem Blue Cross of California that it planned to increase premiums by 39 percent for some policyholders. The proposal to rein in excessive rate increases is intended to position the Democrats' healthcare reform policy as an effort to protect U.S. consumers from predatory practices, the Times said.

Administration officials told the newspaper the Obama proposal would give new authority to the health and human services secretary to block premium increases by private health insurance providers. The proposal would establish a Health Insurance Rate Authority responsible for defining reasonable premiums increases based on market conditions.