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"Premium review must adequately factor in all of the components that determine premium rates, including geographic variation, the cost of new benefit mandates, and the impact of younger and healthier people dropping coverage".
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He said that he hoped to put as few restrictions as possible on the ability of insurers to join the exchange, and that he opposed linking their participation to premium reviews.
It asked some insurers to come back with plans with lower premiums after reviewing their original bids.
The new law requires that the administration review premium increases annually, beginning this year.
"We believe that insurance commissioners should have rate approval authority and will continue to support states' efforts to review premium increases and protect consumers," she said.
"And there is now a process where the federal government as well as states will review premium increases to determine their reasonableness".
Mr Obama's reform includes similar provisions, with a plan to review premium increases above 10% and a programme to reward hospitals and doctors for providing good, inexpensive care.
Consumers also saved $2 billion in 2012, because of programs to review premium rates and to require insurers to provide rebates if they do not spend at least 80% of premiums on care, rather than overhead, such as executive pay and marketing.
Mr. Harkin praised a bill introduced by Senator Dianne Feinstein, Democrat of California, that would give the secretary of health and human services the power to review premiums and block "any rate increase found to be unreasonable".
The computational complexities which are introduced by the risk premium construct are reviewed, and some directions for future research discussed.
Three years into the exchange market's existence, insurers have an incentive to pressure the federal and state exchange regulators with threats to exit the markets to gain leverage when their premium increases are reviewed, or to win favorable treatment on other issues, such as a permanent repeal of an Affordable Care Act tax on their products.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com