Obama wants to block excessive health insurance rate hikes

WASHINGTON (CNN) -- The Obama administration will propose new legislation that would allow the government to block excessive rate hikes by health insurance companies, a senior administration official told CNN Sunday.

The official could not speak on the record because the White House has not yet formally announced the proposal.

Word of the administration plan comes as the White House was to unveil President Barack Obama's latest health insurance reform proposal at 10 a.m. Monday.

The House and Senate have passed their own versions of health care reform. The new Obama plan is expected to attempt to smooth the differences.

The legislation on insurance rates "would grant the federal health and human services secretary new authority to review, and to block, premium increases by private insurers, potentially superseding state insurance regulators," the New York Times reported Sunday night, citing administration officials.

"The bill would create a new Health Insurance Rate Authority, made up of health industry experts that would issue an annual report setting the parameters for reasonable rate increases based on conditions in the market."

The officials said they believe such legislation would take effect immediately after a health care reform bill is signed into law.

-- CNN's Ed Henry contributed to this report