Obama’s plan to curb health premiums is termed as flawed by the State insurance experts.

This plan raises a lot of queries like what is the exact meaning of the word “excessive” for Congress, and what will be the possible way in which the federal power relates to state insurance regulation etc.

Insurance experts share that the federal officials will aim at lessening the premiums while the state officials’ main concern is solvency of insurers.

Sean Dilweg, the Insurance Commissioner in Wisconsin said, “You can’t separate the underlying solvency of companies from the rates they charge. The federal proposal would be a huge pre-emption of decisions that states have made over their history”.

Cutting down the premiums will in no way bring down the cost of care, like the fee charged by the doctors and hospitals.

The efforts of expanding coverage and putting restraints in health costs is supported by the insurance Commissioners, but according to them, it will become highly dangerous to hold down premiums before putting the costs under control.

Kathleen Sebelius, the Secretary of Health and Human services said, “If insurance companies are going to raise rates, the least they can do is tell us why. We are the only industrialized nation that relies heavily on a for-profit medical insurance industry to provide basic health care”.