NU Online News Service, Feb.18, 3:22 p.m.EST

WASHINGTON–The Obama administration, launching aneffort to get its health care reform legislation back on track,issued a report indicating that without changes health insurancepremiums will continue to skyrocket.

America's Health Insurance Plans responded by saying, "It's timeto stop the politics of vilification and focus on what Americansneed most: real health care reform that addresses the serious andurgent problems facing our nation."

The report's comments on premium increases were based onstatements issued by the parent of Anthem Blue Cross of Californiathat its individual market premiums would rise by as much as 39percent in the coming months.

"Leading experts have predicted that, without reform, theseincreases will continue, and the federal government and most statesdon't have the legal authority to block or reduce health insurancerate increases," the report said.

"This shocking increase isn't unique," the report said.

Across the country, it noted, "families have seen their premiumsskyrocket in recent years, and experts predict these increases willcontinue."

It added that, "Sandy Praeger, a leader of the NationalAssociation of Insurance Commissioners, predicts that we will "seerate increases of 20, 25, 30 percent."

Ms. Praeger is former president of the NAIC and current Kansasinsurance commissioner.

The report, issued by the Department of Health and HumanServices, said that its studies indicate that the CEOs of America'sfive largest health insurers were each compensated up to $24million in 2008.

The report was released at a press conference given by KatherineSebelius, HHS secretary.

In defending the industry, Karen Ignagni, president and CEO ofAHIP, said that increases in the cost of coverage in the individualmarket "shine a spotlight on the urgent need to reduce the growthof underlying medical costs and to bring everyone into thesystem."

She said that if reform doesn't address these pieces, it willnot solve the serious problems that individuals, families, andemployers face.

"That is why health plans have proposed fundamental reform ofhealth insurance markets and a long-term strategy to reduce risinghealth care costs," Ms. Ignagni said.

She said that health insurance premiums are increasing in theindividual market because of soaring medical costs and becauseyounger and healthier people are dropping their coverage due to theeconomy.

Joel Kopperud, a director of government relations at the Councilof Insurance Agents and Brokers, added that, "This is anotherexample of how cost containment needs to be the foundation ofreform legislation."

Specifically, Kopperud said, these must include "having astrong, enforceable mandate that creates a large enough pool toadequately cover the costs associated with insurance market reforms– one of the key drivers behind the California insurer's rateincrease."