That report Obama cited on insurers raising premiums
Speaking before an audience in Glenside, Pa., President Obama on Monday discussed a recent phone call organized by Goldman Sachs about the insurance industry.
"These insurance companies have made a calculation," Obama said. "Listen to this, the other day, there was a conference call organized by Goldman Sachs, you know Goldman Sachs," he said to laughter, The Post's Scott Wilson reports.
"An insurance broker told Wall Street investors that insurance companies know they will lose customers if they keep raising premiums. But since there's so little competition in the insurance industry, they're OK with people being priced out of health insurance because they'll still make more by raising premiums on the customers they have. And they will keep doing this for as long as they can get away with it," the president continued.
For those looking for the specific reference, White House deputy press secretary Bill Burton tweeted out a link to the Huffington Post "report potus referred to."
An excerpt from that Sam Stein story:
The market concentration for health insurance is so monopolized in some areas that insurance companies are willing to raise prices and lose customers in an effort to improve their bottom line, a leading insurance broker told Wall Street analysts on Wednesday.
In a conference call organized by Goldman Sachs Global Investment Research, Steve Lewis, a highly regarded broker at the world's third largest insurance broker, Willis, painted a picture of the health insurance market in which employers seem likely to be priced out of coverage.
Noting that "price competition" between insurers was "down from a year ago," Lewis relayed that "incumbent carriers seem more willing than ever to walk away from existing business."
Stein was the first blogger-reporter called on at a presidential news conference in early 2009.
March 8, 2010; 12:59 PM ET
Categories: 44 The Obama Presidency , Barack Obama , Health Care
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