Fresh off a critical response to Anthem Blue Cross’ plans to raise premium rates in California by up to 39%, the U.S. Department Health and Human Services says such requests are not isolated and comprehensive reform can curb the actions of health insurers.

Today (Feb. 19), HHS unveiled a new report entitled “Insurance Companies Prosper, Families Suffer,” highlighting other premium increases and their impact on the American family. The report looks at recent rate hikes approved in several states, including Connecticut (by 24%), Maine (23%), Michigan (56%), Oregon (20%) and Rhode Island (16%).

Kathleen Sebelius

“Premium increases have left thousands of families that are already struggling during the economic downturn with an unpleasant choice between fewer benefits, higher premiums, or having no insurance at all,” said HHS Secretary Kathleen Sebelius in a statement. “Hard-working families deserve better.”

Sebelius recently wrote a letter to Anthem’s parent company, WellPoint, regarding the California rate increase in light of the insurer’s $2.7 billion in profits for the previous quarter. Anthem announced they would delay the rate increase shortly thereafter, allowing California insurance regulators to examine the reasons and impact of such an increase.

In addition to exploring premium hikes, the new HHS report also suggests health reform as a way to fix the nation’s insurance system, drive down costs, put consumer power in choice in the hands of all Americans and decrease the number of the nation’s uninsured.

Among its calls to action, the report suggests additional oversight on health insurers “to ensure that people get value for the premiums they pay,” according to the text of the document. The additional measures would include insurers reporting how they spend premium dollars collected from customers and if too much is on administrative costs and profits, they would have to return some to their clients.

“Insurance companies will also have to provide public justification for premium increases,” the report states. “Consumers can use this information to help decide whether they want to purchase a particular plan. And if insurance companies are not able to justify their premium increases, they could be barred from participating in the health insurance exchanges.”

The report advocates for such exchanges to increase competition and bring families and plans “together into one organized marketplace so families can compare prices and health plans in order to decide which quality, affordable option is right for them.

“Health insurance reform will guarantee every American a choice of health coverage, even if someone loses a job, switches jobs, moves, or gets sick,” the report states.

Other suggested reform measures include ending “arbitrary” limits on coverage by private insurers and preventing discrimination based on underlying health status.

Read the full report here.