This morning is the tale of two headlines. From the New York Times, Health Spending Rose in ’09, but at Low Rate, we learn that “total national health spending grew by 4 percent in 2009, the slowest rate of increase in 50 years.”
From the Los Angeles Times, Blue Shield of California seeks rate hikes of as much as 59% for individuals, We find out that Blue Shield of California seeks massive rate hikes on individual policy holders because BSC claims the cost of health care has risen rapidly.
Another big California health insurer has stunned individual policyholders with huge rate increases — this time it’s Blue Shield of California seeking cumulative hikes of as much as 59% for tens of thousands of customers March 1.
Blue Shield’s action comes less than a year after Anthem Blue Cross tried and failed to raise rates as much as 39% for about 700,000 California customers.
San Francisco-based Blue Shield said the increases were the result of fast-rising healthcare costs and other expenses resulting from new healthcare laws.
These two articles just don’t add up; they’re completely at odds with each other.
Of course some have argued a key benefit of private health insurance companies is their use of the concentrated purchasing power of their aggregated customer base, applied in negotiations with health care providers to yield lower rates and costs to consumers. If Blue Shield of California is “forced” to raise premiums because of growing health care costs, it means that BSC is doing a lousy job of wielding its purchasing power.




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So if health care costs aren’t rising that rapidly, why would Blue Cross need to jack the rates up 59%? /s
Get it while you can?
wonders a small voice with still a spark of hope and change
They ask for 50%, and will sacrifice themselves at 40% when the furor dies down.
How’s that HCR workin’ out for ya, O?
New York Times, “total national health spending grew by 4 percent in 2009″
vs.
Blue Shield of California seeks rate hikes of as much as 59%
Did CA costs go up more than the national average?
Health Insurance Companies are like all corporations they have one goal and that is to make as much money as possible.
Health Insurance Companies make money denying people coverage, the more baby boomers that enter the system and demand coverage the higher the rates will have to go, to keep their bottom lines going up.
It is a pretty easy equation
More Demand for Health Insurance = Higher Rates, because you can’t deny everybody coverage.
the term “HEALTH” confuses people,(insurance companies can care less about sick or healthy people, they only love the DOLLAR)
the new Blue Cross slogan should be “we hate mother teresa”
Unless the California Public Utilities gives them every dime that they ask for. Without a public option included in the HC bill anyone with 1/2 a brain knew that it wouldn’t work. Peace
Off with their heads! (metaphorically speaking)
You mean the regulators aren’t yet wholly owned subsidiaries of the insurance corps in CA yet?
lol!
i don’t know what bcbs asked for last year in MA, but after compromise with state regulators my bcbs insurance went up 40%.
p.s. hiya ecahn!
Maybe yes. Maybe no. So much for regulations, laws and good government. Peace
Standard negotiating, ask for a huge amount and settle for twice what is really needed.
Blue, Show us the basis for your request. Put them on the web.
Hiya selise. Hope all is well.
Without the public option to bring in some market forces and to try to keep the insurance companies quessing Obama’s HC bill was a joke. Thanks very much to Rahm Emanuel and the rest of the Clinton crew serving in the WH. Peace
nice to “see” your fonts selise.
You may be wrong. Obama has never negotiated like that. Doesn’t our fearless leader know all? Peace
Let’s see… If the Repubs manage to repeal the health care bill or it is shot down by the Supreme Court, will we see Blue Shield apply for a rate DECREASE? Not a chance!
BC’s request is complete bs. Some higher level execs want to upgrade their fleet of yachts or mansions I guess.
Thanks Obama.
re market forces. that’s the neoliberal mythology. in a poorly regulated insurance market, market forces would make a “level playing field” public option the dumping ground for the sick (see adverse selection and risk adjustment).
lol! yours too!
happy new year! just stopped by for a bit, but real life calls….. seeya…
another hideous outrage!
Happy New Year to you too.
‘If Blue Shield of California is “forced” to raise premiums because of growing health care costs, it means that BSC is doing a
lousygreat job ofwielding its purchasing powerspending on advertising, bribing pols, and remunerating top executives.’We have the Republicans and the Democrats falling all over each other in their fervent efforts to serve the corporations. Does anybody really believe that there will be any control exerted over the excesses of the few who have figured out how to defraud the American people, with impunity, without fear of punishment, in fact, to be lauded for their efforts to destroy our country. The House keeps blathering on about saving pennies, insisting that this last election was a sacred mandate from the people to destroy the middle and working classes. It must be fun to know that you have yours, and that you can screw the 90% of Americans who are struggling and suffering, and lie blatantly that this is what these same suffering people have been asking for. The more we pinch pennies, the more we attempt to curtail our use of the medical system, the harder we try, the more they are going to punish us.
Who said anything about costs?
Spending is down, people can no longer afford to go to the doctor.
Nothing to do with the price.
If a let-them-eat-cake economy can be created by convincing tea party members the ultra wealthy should have lavish tax break extensions, financed by China, then why shouldn’t the health insurers say you dare try escape from our monopoly and premium death spirals, and we’ll simply gouge you.
The health insurance cartel’s lobbyists have demagoguing the economy
into a state of critical low blood pressure.
If the economy were a boat, they and the other lobbyists’ puppeteers
would have so many of everyone’s toys in their corner of the boat that
the boat will barely sail along and will be easily swamped by the first
healthy boat to cruise by.
http://robertreich.org/post/1456447090
http://sites.google.com/site/evernewecon
The real cause in California is the illegal aliens. They are sucking the life out of the California (and the U.S.) Most of the them are a SEVERE net loss on the economy.
So, what was the excuse given by Blue etc. when their premiums increased 87% (and their profits increased 428%) between 2000 to 2008. As an aside, doctors are as much as part of the health-care consortia as are the insurance industries so why aren’t they ever mentioned as being responsible for this debacle called a health care system. So hell-bent on making a bundle, they manage to kill about 30,000 Medicare patients/year from over-treatment.
Is this the year Boomers start retiring? I think it was forecast that a million per year would leave the workforce (i.e. employer insurance rolls). Could we be seeing some loss of enrollment, and lack of new enrollment due to the job loss picture, as causes for the scramble to maintain profit margin via leap in prices?
Many of the 39 BCBS companies are owned by a single corporation – such as the 14-state WellPoint which is the largest Blue Cross Blue Shield member, and is a publicly traded company. Other multi-state organizations include CareFirst in the Mid-Atlantic and The Regence Group in the Pacific Northwest. The largest non-investor owned member is Health Care Service Corporation which operates four Blue Cross and Blue Shield Plans in the Midwest and Southwest (Illinois, Oklahoma, Texas, and New Mexico). Most of the group gave up special tax breaks and became fully for profit in 1994 –
I do not understand why states would permit 59% rate increases absent a 59% claim cost increase because the insurance is sold as one year term – and events that will occur in 2014 under the health insurance reform have near zero effect on 2011 and 2012 – indeed there is no data for the cost of guaranteed issue despite pre-existing – and given that they are pricing that guaranteed issue separately, it should have no effect on individual policies. In group no pre-existing rejection if able to work clauses have been around and do not produce massive claim increases.
I would guess the companies are refusing to pool claims via reinsurance, and then using that resulting business model and its claim uncertainty to fudge factor out of their butt a huge add-on for “possible” increased claims.
Do the State insurance Departments have no Actuaries these days? – They do not need a FCAS, or a FSA, who have health experience, although most of us do – just any FSA can review the data and write up the reasons to reject the rate increase. I and many retired like myself would be happy with a few extra dollars for doing this chore.
Obama didn’t tell any health care insurance company to raise their rates. If you’re angry aim your comments at the real responsible parties.
If there were real competition for those customers they’d drop their policies and go with another company. This is more evidence there isn’t a real competitive marketplace for health care insurance in some states.
I’m a Blue Shield customer in California in the Individual Market. The only person on my policy is myself. I have never had a surgery, a broken bone or a hospital stay in 61 years (if you don’t count the fact that I was born in a hospital). I haven’t had a chronic illness and am on no medications. I’ve been to the emergency room only 3 times in my life. The most serious of the three was a nose bleed that wouldn’t stop.
In November ’09, I switched policies within Blue Shield to lower the premium from the $647 that it was scheduled to become when I turned 60 in Jan ’10. The premium was lowered to $314 by doubling my deductible which I, of course, have never met even when it was $2500.
In Feb ’10 my premium increased $94-rationale- significant birthday.
In Aug ’10-my premium increased $54
In Jan’ 11-my premium increased $31-this info was included in the giant
packet that was delivered at the beginning of December and which
I now force myself to read
Before I even read the giant packet to find out about the $31
increase, I received a letter informing me that the premium would
In March ’11 be going up an additional $45 due to increased costs to Blue Shield in hospital, drug and physicians costs, including those “anticipated” to come in 2011.
That’s 4 premium increases in 13 months! Up until December ’10, I hadn’t seen a single Dr or medical professional for anything in 2010 because I couldn’t afford to do so. Finally, I made an appt for the eye Doctor because I desparately needed new eyeglasses. Of course, nothing is covered by my insurance.
But the kicker in the whole thing, is that within the giant packet was the information that because I have had my policy since before March 2010, the policy was to be considered “grandfathered” and therefore NONE of the Healthcare bills provisions that are coming into effect, including paying for preventive care, would apply to my policy. Then they quote Obama’s statement about how people who liked their insurance would not be forced to change policies.
And that, my friends, is the giant loophole that Blue Shield was allowed to drive through in order to have the only good things in the Health Insurance Bill not apply to, probably, 90% of their customers.
The Oligarchs bought Boardwalk and Park Place.
Of course they’re going to put hotels on both of em. Heck, they’ll prolly alter the monopoly rules so that they can place multiple hotels on each.
Hail the good news! With each leaping premium, especially as unemployment towers, more will drop from the rolls, or be dropped from their employers’ group plan (I’m sure many group plans will be dropped altogether.)
The number of uninsured has risen from 45 million to almost 60 million, approximately 2 Californias. That’s a lot of people.
Any bets as to when the sheeple will cry ENOUGH!? 85 million? 105 million? 220 million (2/3 the country?) The death spiral of a failed business model can only accelerate, and is. As more drop off, the remaining must pay more to compensate, which causes more to fail. More bankruptcies occur, policies get shittier, causing even people with insurance to go bankrupt.
More bankruptcies help poison the coughing economy. Political panic may ensue, perhaps enticing pols to move up the date for the mandates, but by then many millions more will require the subsidies which Repubs HATE and will fight tooth and nail to eliminate, causing more gridlock and uncertainty, threatening the economy and causing more people to lose insurance thanks to Rep and Dem non-regulation of the insurance industry prices . . . and on and on and on and on and on . . . .
There is really only one answer and until we reach complete crisis status, things will not change. Soooo . . . Hail the Good News!!
This monster needs to be stopped.
Too bad BHO and the Dems missed the only chance we may ever get to do it.
Hm, the Pre-existing Conditions Insurance Plan (PCIP) in CA is administered through CA BlueShield. It takes only having gone to the doctor for a migraine to qualify as having a Pre-existing condition, and being turned down by an Individual Insurance Plan because of it.
Noteworthy, the CA PCIP literature says that a 15% annual premium cost increase is mandated in the program. This 59% increase for Individual Plans currently on the table from CA BlueShield is to be reviewed by the CA state Insurance Commissioner first before it is approved.
Is the 59% CA BlueShield has on the table for Individual Plans what’s already been contractually negotiated by the CA IC to get the CA PCIP to only a 15% per annum increase? Interesting hypothesis.
Obama stopped any kind of public option from being included in the HC bill. he also killed drug re-importation. He is one of the responsible parties.
Yeah, he actually ‘negotiated’ with Billy Tauzin, of all people re. Big Pill non-reform.