Lack of insurance competition causes problems

March 8, 2010 5:53:24 PM PST
Goldman Sachs has found that competition in the insurance market is so weak, insurance companies can continue to raise rates even if it means losing customers.

Rep. Jackie Speier, D-San Mateo, says that is why there will be regulation.

"They are making the case for us very strongly that rate regulation is the answer," she said. "There are 25 states in the country that have rate regulation and interestingly enough, when Blue Cross went to those states asking for their 36 percent increases, they were cut in half."

Monday, President Obama pressed for a congressional vote saying, "We can't have a system that works better for the insurance companies than it does for the American people."


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