Texas Health Insurance Suffers From Near Monopoly
Start here... |
| Select Insurance Type: |
| Zip code: |
|
|
The article states that in the last 6 years Texas health insurance premiums have risen to become 87% higher than in the past, far faster than the rise of inflation or paychecks.
"For family health coverage, the average annual combined premium for employers and employees rose from $6,635 to $12,403." And that's for family health insurance, which tends to be less expensive than the individual health insurance market.
The reason for this spike in costs, according to the American Medical Association, is that two health insurance companies have created a near-monopoly on the Texas health insurance market that has allowed them to "raise rates and reduce options with impunity."
The two companies in question, Blue Cross Blue Shield and United Healthcare each argue that it's the cost of health care and an aging population that relies on that care that has driven up their premiums.
But, insurers profits don't support this notion. From 2000 to 2007 the net incomes of the "10 largest insurance companies grew from $2.44 billion in 2000 to $12.8 billion in 2007."
President Obama is using this argument to support his notion that state-run insurance plans won't protect the consumer. And, with numbers like that, it's easy to see his point.
For those looking for better rates on Texas health insurance, or anywhere else, the key might be to go with a smaller insurer that isn't part of such a monopoly. It might take some time and effort, but saving the cash would definitely be worth it.