I am not sure anyone has actually said this, but that has certainly been the implication, right? Obama & Pelosi spends a lot of time accusing insurance companies of having profits that are too high, so I have to believe his intention is to reap cost savings by cutting into them.
I have blogged about this before, but Carpe Diem also picks up this thread, observing that health insurance companies are #86 on the list of US industries in terms of profit margins, with a ROS of 3.3%. As Mark Perry points out, this gives them a profit of about $100 per individual policy. Not really a very promising source of savings, is it? But it is very scary for any industry that makes more than 3.3% profits, knowing that the Administration thinks they are making too much money and has shown a willingness to slice into profits it thinks to be excessive.