Increasing Profits in Tough Times
February 2010
Anthem Blue Cross is facing political ire over its decision to hike premiums for
California Individual Health Insurance, in some cases by as much as 39%.
Thankfully, it appears that the days when health insurance companies like Anthem Blue Cross could raise rates as they saw fit are over. According to the
health care piece in the LA Times, the Obama administration is calling on California's largest for-profit insurer to justify its premium increases.
After all it can't be an issue of lowered profits. Anthem's parent company just released data on profits for 2009,and in the last 3 months of the year they enjoyed "an eightfold increase in profit" due to the sale of subsidiaries.
California individual health insurance costs have been difficult enough to manage for most state citizens, who must contend with both a nationwide recession, as well as a state-specific economic crunch.
Anthem Blue Cross has responded that the rate increases are due to rising health care costs, as well as a lowered number of enrollees. As more and more people forgo health coverage, only those who truly need it are willing to deal with those high premiums.
Facts on:
How much profit is enough for Anthem Blue Cross of California?
Did you know...
Anthem Blue Cross is facing political ire over its decision to hike premiums for California Individual Health Insurance, in some cases by as much as 39%.
|
And this means that premiums will go up to cover those costs.
If less than 70% of the profits gained from California
individual health insurance are going to medical care, the company can be reprimanded.
But if not, there's nothing the government can do to control costs in California, unless health care becomes a federally managed system.
Current Topic:
Recent Topics:
