Health Care Providers Vs Health Care Cost

How many more rate hikes (Monthly Health Insurance Premiums) can the average American afford? Blue Cross Blue Shield (Health Insurance Company) notified millions of Americans this past month that their health insurance premiums would be rising. This is the reason CareFirst/ Blue Cross/Blue Shield of Washington gave it’s members for raising monthly health insurance premiums from $333.00 to $512.00 on a middle aged, non-smoker, height weight proportionate male: “Your new rate reflects the overall rise in health care costs and we regret having to pass these additional costs on to you.”

Health insurance providers are taking advantage of consumers in advance of Obama Care taking effect in 2014.

According to publicly available profit and loss statements, The United States’ largest health care providers, such as  Wellpoint, Humana, United Health Group, Cigna and Aetna, collectively posted a net income of more than 12 billion dollars in 2009.

A Consumers Union report says that not-for-profit Blue Cross/Blue Shield groups are raising health care insurance premiums by as much as double digits to build up their cash reserves.

Consumers Union has cited the worst examples:

• Blue Cross Blue Shield of Arizona raised its reserves from $648 million in 2007 to $717 million in 2009  (more than seven times the amount required in that state). During that time, individual health insurance policy rates jumped about 40 percent.

• Health Care Services Corp., which includes Blues plans in Texas, Illinois, New Mexico and Oklahoma, built up its surplus from $6.1 billion in 2007 to $6.7 billion in 2009, five times the minimum in those states.  Meanwhile, its health insurance plans’ rates rose by up to 20 percent per year.

So what’s the truth? Are insurance companies raising rates to bulk up reserves or are they raising rates in advance of rising costs they are anticipating by Obama-care, or are they raising rates because of an actual rise in the delivery of healthcare costs? It seems impossible to get a straight answer.

Be Sociable, Share!

•