You know how the Republicans are all super excited to block “ObamaCare”? Which, to be honest, more resembles McCain’s plan during the election than Obama’s own plan. Well, this is what the tea partiers are fighting to preserve here in California:
Anthem Blue Cross is telling many of its approximately 800,000 customers who buy individual coverage — people not covered by group rates — that its prices will go up March 1 and may be adjusted “more frequently” than its typical yearly increases.
The insurer declined to say how high it is increasing rates. But brokers who sell these policies say they are fielding numerous calls from customers incensed over premium increases of 30% to 39%, saying they come on the heels of similar jumps last year. (LA Times)
If my own experience with Kaiser are any guide to what the individual market is as a whole, premiums have gone up around 125%. It’s completely unsustainable.
But, you know, yay for Scott Brown.
Health Insurance companies make most of their profit over time through investments. It is during difficult economic times–when investment income dips substantially–that most HMOs raise their rates.
A rather sad irony that during a time when so many can’t afford to pay more and more for insurance, they are expected to pay for huge increases in their premiums–not to mention more pushback on claims.
IF these huge mega-HMOs made better investment decisions and kept a ‘rainy day’ fund for shareholders to more-or-less even out the boom and bust periods, they wouldn’t feel so compelled to raise rates when people can least afford to pay.
Big business folks often cry out that governments should create rainy day funds to better deal with bad budget years. Maybe they should take a heaping spoonful of their own medicine.
No one could have predicted that the insurance industry, after using premium payer’s money to lobby against health care reform, would see an opportunity to raise rates after the legislature cleared the field from any real competition in the individual market? Except anyone paying the slightest lick of attention. SB810 (Leno) would address this kind of fuckery from the git go. Let’s double down on this already proven fix.
Pass it! Insurance companies can get into the elective surgery business.
We really don’t need the nuts and bolts reasons why they raise rates, the point is there is NOTHING TO STOP THEM FROM DOING SO, especially when people can LEASE afford it!
All the more reason to pass SB810 and force the Governator to sign it. Or HOLD it and wait for Jerry Brown to sign which I believe he will.
We shouldn’t have to pass this thing for a 4th time.
Again I don’t know what Dan was trying to point out, other than we should maybe improve the economy and then they can justify the rate increase or they’ll have money from the investments they make?
I ain’t quite sure man, try again.