You might have heard about Anthem Blue Cross’s planned 39% health insurance rate increase for some policy holders. We should probably breath a sigh of relief that the plan is (possibly permanently) postponed but, Ezra Klein might have a point::
The Anthem Blue Cross saga appears to have a happy ending: After criticism from the administration, the insurer has delayed the planned 40 percent rate hike. That will give the company time to reevaluate whether it’s worth the blow-back, and I’d guess there’s a good chance it never takes effect at all.
But if this is a good outcome, it’s a not a good policy. The insured can’t depend on someone in the White House’s communications shop noticing when an insurer tries to screw its customers.
And Ezra goes on to point out the wonderful ways both the Senate and House bills will (eventually) keep future threats from happening. Right.
A friend of mine says, this situation is likely to be a feature not a bug:
Top Five Health Insurers Posted 56 Percent Profit Gains in 2009
If no health care overhaul passes Congress, health insurers may be in for a windfall — and one far larger that most Americans probably realize.
According to a study by a pro-health reform group published Thursday, the nation’s largest five health insurance companies posted a 56 percent gain in 2009 profits over 2008. The insurers including Wellpoint, UnitedHealth, Cigna, Aetna and Humana, which cover the majority of Americans with insurance.
The insurers’ hefty profit gains came even as 2.7 million more Americans lost their insurance coverage due to the declining economy.
At the end of his post Ezra claims that:
In this case, Anthem has an insurance plan with sicker people that is not proving profitable. They’re increasing the costs to either drive those people out or force them to pay a lot more.
But, according to the Alternet Story,
Wellpoint’s Anthem Blue Cross California created a stir earlier this week by announcing that it will raise premiums on individuals by 39 percent in 2010.
(snip)
Yet, the company posted a profit of $4.7 billion for the year. That put it at a higher profit margin (7.3 percent) than any of the other top five American insurers.
Who knows how this is going to end for us — any predictions based on press releases out of the White House or the Capitol are probably as valid as reading tea leaves.
But, it’s painfully obvious that while WE wait, a lot of people are making a lot of money.
. . . What else are you waiting for?
Filed under: General | Tagged: Health Care for Everyone | 59 Comments »