Stupak continues to pursue insurance company data

Nearly two weeks after asking insurance companies for information on executive pay and revenue, Rep. Bart Stupak (D-Mich.) and Rep. Henry Waxman (D-Calif.) have sent a second letter to insurance companies asking for information on their policies toward and treatment of small businesses.

In a statement accompanying the release of the letters, the two Democratic leaders said they were concerned about insurance companies canceling coverage, or raising the rates so high that coverage had to be canceled, on small businesses if an employee at that company got sick enough to require significant payouts by the company:

“I began looking into the practices of the health insurance industry in the last Congress and was deeply disturbed by what we uncovered,” said Chairman Waxman. “As part of our ongoing investigation, we are now looking into the practice of health insurance companies terminating the coverage of small businesses when their employees become ill and their health insurance claims increase. We need to better understand how widespread this harmful and destructive practice has become, and how it is impacting small businesses and their employees across the country.”

“As we continue our investigation into business practices in the health insurance industry, the treatment of small businesses remains a concern,” said Chairman Stupak. “We have documented examples of insurance companies raising small business premiums by an unsustainable amount or canceling a policy once it is discovered a covered employee is sick. Much like rescissions in the individual market, this practice is alarming. To better understand how prevalent this practice is and precisely how many small businesses are impacted, we are asking some of the largest insurers to provide information on their small business policies.”

Waxman is the chairman of the House Energy and Commerce Committee; Stupak is chairman of the Oversight and Investigations Subcommittee. The insurance companies have until Sep. 8 to inform the committees whether they will comply with this voluntary request for information.