Insurers May Face Fees to Help Fund U.S. Health-Care Overhaul

July 16 (Bloomberg) -- Insurance companies should use their profits to help fund as much as $100 billion of a landmark overhaul of the U.S. health-care system, senators including Democrat Charles Schumer of New York said.

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It was criticized by America's Health Insurance Plans, a Washington trade group that represents the industry.

"As families and small businesses struggle during the current economic slowdown, now is not the time to impose new fees on health-care coverage that will make coverage less affordable," Robert Zirkelbach, a spokesman for the group, said in an e-mailed statement.

During their press conference, Democratic senators said insurers should pay at least $75 billion to help finance the legislation. They cited industry earnings, with Robert Menendez of New Jersey saying the companies are making profits "on the backs of American families across this country."

'Not Fair'

"Every other industry is kicking in," Schumer, 58, said. "For the insurance industry to stand aside is not fair."

Schumer said the top 10 U.S. health insurers saw profits jump by 428 percent between 2000 and 2007.

"That profitability is enough to make big oil executives blush," Schumer said. (continues)

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