Increasing Profits in Tough Times
February 2010
Individual health insurance premiums are going up again this year - way up. And while that's not necessarily new news, what is pleasantly surprising is the amount of heat that
health insurance companies are taking for it.
The protesting all started last week when Anthem Blue Cross'
individual health insurance hikes in California went public, and gave President Obama and congressional Democrats something to stand on in their sinking health care debate.
The hikes are as much as 39% in many cases, a ridiculous amount when so many people are struggling to make ends meet in the current economy. Anthem and other health insurance companies are being forced to defend their freewheeling rate hikes for the first time since their inception - a very good sign for those who suspect that the rate increases aren't designed with consumers in mind.
According to the LA Times' piece on
health care, the top health insurance companies in America - WellPoint Inc., United Health, Cigna, Aetna, and Humana - covered 2.7 million
fewer people, and yet somehow made 56%
more money than the year 2008.
Facts on:
Individual health insurance premiums are going up again this year - way up!
Did you know...
The hikes are as much as 39% in many cases, a ridiculous amount when so many people are struggling to make ends meet in the current economy.
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Apparently the insurance industry is recession proof.
Individual health insurance is already costlier than group health insurance, due to the higher cost/risk ratio involved in covering individuals. Many of the 800,000 people covered by individual insurance in California are struggling to pay premiums as it is.
These premium hikes could lead thousands to forgo insurance altogether, which in turn would lead to higher premiums the year after.
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