Insurance companies taking huge premium increases and profits?

[Kratos]

On a recent Fox News debate about health insurance, Democratic political strategist Bob Beckel explained that, “The president needed an enemy, and the insurance companies are it.”

Proving that point in a Pennsylvania stump speech, President Obama asked, “How much higher do premiums have to go before we do something about it? We can’t have a system that works better for the insurance companies than it does for the American people.”

On February 20, President Obama used his weekly radio show to express outrage that a fraction of Californians buying individual Anthem Blue Cross Blue Shield (BCBS) plans “are likely (sic) to see their rates go up anywhere from 35 to 39 percent.” He used those figures to justify preempting state regulation “by ensuring that, if a rate increase is unreasonable and unjustified, health insurers must lower premiums, provide rebates, or take other actions to make premiums affordable.”

There was always something peculiar about this desperate effort to demonize certain health insurers. Individual plans account for only 4 percent of the insurance market. So why do they account for 100percent of the president’s fulminations about insurance premiums? Could it be because insurance premiums for the other 96percent have not been rising much?

Nonprofit BCBS plans account for a third of the private health insurance market. Michigan’s nonprofit asked for 56 percent premium hike without the national media taking that Hail Mary pass too seriously. But even Obama finds it difficult to accuse nonprofits of being too profitable, so he needed to pin his enemy badge on a for-profit firm – one of Wellpoint’s “Anthem” BCBS plans.

Anthem of California’s requested rate increase on individual policies was actually 20-35 percent. The only way it could get to 39percent would be if a policyholder insisted on a gold-plated Cadillac plan and also happened to move up into a higher age group. Besides, requesting a rate hike means nothing. Even Obama’s radio address mentioned two requests that had been cut in half. Many are denied.

So, how many Californians have actually been faced with a 39 percent increase in their premiums? Exactly zero.

How many are really “likely” to be faced with even a 35 percent increase after state insurance regulators have their say? My forecast: Zero.

The president highlighted the “likely” increases of “35 to 39 percent” to suggest insurance companies in general were asking for huge premium increases just to boost their lavish profits. He complained that in the $1.2 trillion health insurance industry, “the five largest insurers made record profits of over $12 billion.” But that puny sum includes WellPoint’s sale of its pharmacy benefits management company NextRX to Express Scripts for $4.7 billion last April. Adding that $4.7 billion to WellPoint profits is like saying a family’s income rose by $1 million because they sold a million-dollar home.

University of Michigan economist Mark Perry calculated that without the sale of NextRX, “WellPoint’s profit margin would have been only 3.9 percent, the industry average profit margin would have been closer to 3percent”— $100 per policy. Yet Obama concluded that, “The bottom line is that the status quo is good for the insurance industry and bad for America.”


The media echoed the president words endlessly, and wrote as though one company’s hypothetical request for increases of 35 percent-39 percent were a nationwide threat—even to those with group insurance—rather than an unique and highly unlikely request that might (if magically approved) touch a miniscule number in a hostile state for health insurers.

“It doesn’t take too many 39 percent increases, like the recent one proposed in California that has garnished so much attention, to put insurance out of reach,” exclaimed a New York Times report. That same paper’s editorial added, “The recently announced plan by Anthem Blue Cross in California to raise annual premiums by 35 to 39 percent for nearly a quarter of its individual subscribers is a chilling harbinger of what is to come if reform fails.” Really?

Grasping for confirmation of the 39 percent figure, some reporters cited a Feb. 24 memo about Wellpoint written by journalist Scott Paltrow for The Center for American Progress Action Fund. Paltrow gathered news clippings suggesting premiums are “expected to” increase by “up to” some scary number in various states. For California, however, Paltrow’s source was the president’s speech. This Action Fund is a is no “liberal think tank,” as the Wall Street Journal put it, but a 501(c)4 lobby which can participate in campaigns and elections. Founded by Bill Clinton’s former chief of staff John Podesta, it’s a propaganda arm of the Democratic Party.

A Wall Street Journal story about Wellpoint’s wish list for higher premiums cites the Department of Health and Human Services as its source. That means a shoddy four-page polemic at HealthReform.gov, “Insurance Companies Prosper, Families Suffer.” That pamphlet, like another from the Commonwealth Fund, cites Duke Helfand, an L.A. Times reporter who wrote on Feb. 4 that, “brokers who sell these policies say they are fielding numerous calls from customers incensed over premium increases of 30percent to 39 percent.”

So, the president’s 39 percent figure came from Duke Helfand, who heard it from insurance brokers who, in turn, said they heard it from customers. The 39 percent figure referred to one person named Mary. After rounding Helfand’s 30 percent up to 35 percent, however, that was good enough for the president’s purposes.

Like Obama, the “Insurance Companies Prosper” pamphlet repeatedly confuses asking with getting. “Anthem Blue Cross isn’t alone in insisting on premium hikes,” it says; “Anthem of Connecticut requested an increase of 24 percent last year, which was rejected by the state.” So what? If you went to your boss and insisted on a 24 percent raise, would that constitute proof that wages are rising too fast?

If Obama has been reduced to basing the redistribution of health care on the cost of health insurance premiums, he will need much better facts. Fortunately, credible statistics on health insurance premiums are readily available from the Centers for Medicare and Medicaid Services (CMS) and Bureau of Labor Statistics.

CMS statistics (Table 12) reveal that the net cost of private health insurance – premiums minus benefits – fell by 2.8percent in 2008. Furthermore, CMS Health Spending Projections predict that spending on private health insurance will rise 2.5percent in 2010, while prices of medical goods and services rise by 2.8percent.

Consumers’ cost of health premiums is also part of the detailed consumer price index. After all the overheated rhetoric about “requested” or “expected” increases of “up to” 39 percent, who would have imagined that the average consumer cost of health insurance premiums fell by 3.5 percent in 2008 and fell by another 3.2 percent in 2009?

The president’s health insurance proposals hoped to use stern command-and-control techniques to run the health insurance system. It was all about minimizing free choice and maximizing brute force—forcing people to buy certain kinds of politically-designed insurance, forcing insurers to cover services many consumers do not want to pay for, and forcing insurers to curb or roll back premiums even as medical costs go up. The whole shaky apparatus was built upon even shakier statistics—including the purely hypothetical 39 percent increase in premiums that Mary’s insurance agent reported to Duke Helfand.

Alan Reynolds is a senior fellow with the Cato Institute and the author of “Income and Wealth.”


http://dailycaller.com/2010/03/15/th...and-profits/2/

[TITANIUM]

The whole think is questionable at best.

I'm 44 and my middle of the road plan went up from $540.00 a month to $700.00.

And my prescription and doctor co=pays went up also.

So, basically the theory is that I am paying more money for less coverage.

Hmmmmmmm....................................

Now, with the passage of this new "ObamaCare" plan, I can expect my Medicare or social security taxes to go up also.....

Just what I wanted, government mandated health care, that in itself means that, not only will it cost me more money for my own health coverage, but now I have to pay more money for those who do not have it.

What else "slight of hand" things are to be expected over now government owned health care system?

Best

T

[BgMc31]

The whole think is questionable at best.

I'm 44 and my middle of the road plan went up from $540.00 a month to $700.00.

And my prescription and doctor co=pays went up also.

So, basically the theory is that I am paying more money for less coverage.

Hmmmmmmm....................................

Now, with the passage of this new "ObamaCare" plan, I can expect my Medicare or social security taxes to go up also.....

Just what I wanted, government mandated health care, that in itself means that, not only will it cost me more money for my own health coverage, but now I have to pay more money for those who do not have it.

What else "slight of hand" things are to be expected over now government owned health care system?

Best

T

C'mon T, as crappy as this bill is, this isn't government owned health care. Government owned health care would be a single payer system or even a government run health insurance. This bill is neither of those. You're more intelligent to fall for the rhetoric and fear mongering...I KNOW YOU ARE!!! C'MON!!!!

[OCTOBER-2009]

Obama is attempting to destroy the middle class in an effort to bring about a socialist/communist state. The way to do this is to put an end to capitalism.

Just look at what Hugo Chavez has done in Venezuela as a mirror to what Obama wants to do in the USA. In 1999 Chavez brought in a new constitution and a unicameral legislature. Can you say reconciliation?

Today Chavez talks of illiteracy, healthcare, poverty, and economic & social advances. The same B.S. that Obama spews.

[Kratos]

C'mon T, as crappy as this bill is, this isn't government owned health care. Government owned health care would be a single payer system or even a government run health insurance. This bill is neither of those. You're more intelligent to fall for the rhetoric and fear mongering...I KNOW YOU ARE!!! C'MON!!!!

are you blind?
this isn't rhetoric or fear mongering
the end goal is single payer for this bill
http://www.youtube.com/watch?v=B-_SGGcJu_c&NR=1

they have put everything in the bill to raise costs...not lower
what benifit do you see to your health premiums in the bill...you're getting the shaft, wake up.
The expansion of medicaid expansion will have to get bigger as private insurance becomes too expensive...to what end?

[Mooseman33]

it all points to a single payer system..
who will control the "exchange" where u have to purchase ur plans from....the govt.
who will set those plans, the govt.

BgMc, i know u love our pres. but dammit man, this is a shit bill and is just the beg.
now this shit admin is going to ram immigration reform, climate bill, cap and trade down our throats cause they no that in jan they are out...
Nov. cannot come fast enough....

[Kratos]

http://www.youtube.com/watch?v=vxa4dgwnzS0
http://www.youtube.com/watch?v=9nsX-1ctyr0
http://www.youtube.com/watch?v=UfOWnZ82Pm4

but, I guess using this bill as a stepping stone never crossed a democrat's mind

[BgMc31]

Mooseman, I'm not a big fan of this bill either. Don't get me wrong. But like I said before I'm on the opposite side of the coin. I see no problem with a government health care option. The key word being option.

I don't think I'm blind, Kratos. Maybe I'm being hopelessly optimistic. Maybe I don't buy into the whole conspiracy theory that you buy into that Obama's this grand dragon of the communist party and in 4-8yrs we will be a communist state. I've seen my premiums go up every year since I became successful... and for what? Profits for the insurance companies. I, unlike you, have no problem having my premiums go up if its for something and not to line someone else's pockets.

If you think its a stepping stone to world domination. Fine...I guess we all have to take a wait and see approach. We'll see especially considering the bulk of this bill won't take effect until 2014.

As far as immigration reform is concerned. Its another 'hot button' issue that the right is using fearmongering to push their agenda. Like healthcare, something needs to be done and deporting all those people is not only impossible but if it was, it would be much more costly than some type of pathway to legal status. I'm sure the bill they come up with won't be what I want, but at least, like healthcare, something is going to get done. The right has yet to come up with any serious, passable, legislation on either issue. Again the key words in the last statement being serious and passable.

Look, I understand everyone's frustration. Mooseman and Kratos, you know my background. But for those who don't, here it is, I went to high school in West Texas (father was stationed at Fort Bliss, Tx), I attended the Univ. of New Mexico on a football scholarship. I played my professional football in Arizona and N. California. Now I live in Las Vegas, NV. So I've seen the direct impact of both these issues most of my life. Doing nothing, IMO, has led to all the problems we have. I am a fan of Obama, for one reason...he's working on these issues. Do I agree with him at every turn? NO!! But, I absolutely don't agree with the alternatives presented by the right.

[Kratos]

Maybe I don't buy into the whole conspiracy theory that you buy into that Obama's this grand dragon of the communist party and in 4-8yrs we will be a communist state. .

Oh my freakin god bgmc, you're going to call me a conspiracy theorist after watching those videos.

No it's not going to be this grand dragon of the communist party.

It just happens to be his fundemental ideal that America should have single payer health care. He's moving towards that goal. He's not doing this cause he's a bad person but because he thinks it's the best thing for america. But he's going outside his power to get it done and against public opinion. It's a simple fact that this is where we are headed...and I'm not trying to spread fear, or propaganda, just facts.

read his lips
http://www.youtube.com/watch?v=ad7xnprINp0

"I happen to be a proponent of a single-payer universal health care program. I see no reason why the United States of America, the wealthiest country in the history of the world, spending 14 percent of its gross national product on health care, cannot provide basic health insurance to everybody. And that's what Jim is talking about when he says everybody in, nobody out. A single-payer health care plan, a universal health care plan. That's what I’d like to see. But as all of you know, we may not get there immediately. Because first we've got to take back the White House, we've got to take back the Senate, and we've got to take back the House."
--Obama 2003

oh crap, I better provide that video too else be asked for a source later
http://www.youtube.com/watch?v=fpAyan1fXCE

[BgMc31]

Oh my freakin god bgmc, you're going to call me a conspiracy theorist after watching those videos.

No it's not going to be this grand dragon of the communist party.

It just happens to be his fundemental ideal that America should have single payer health care. He's moving towards that goal. He's not doing this cause he's a bad person but because he thinks it's the best thing for america. But he's going outside his power to get it done and against public opinion. It's a simple fact that this is where we are headed...and I'm not trying to spread fear, or propaganda, just facts.

read his lips
http://www.youtube.com/watch?v=ad7xnprINp0

"I happen to be a proponent of a single-payer universal health care program. I see no reason why the United States of America, the wealthiest country in the history of the world, spending 14 percent of its gross national product on health care, cannot provide basic health insurance to everybody. And that's what Jim is talking about when he says everybody in, nobody out. A single-payer health care plan, a universal health care plan. That's what I’d like to see. But as all of you know, we may not get there immediately. Because first we've got to take back the White House, we've got to take back the Senate, and we've got to take back the House."
--Obama 2003

oh crap, I better provide that video too else be asked for a source later
http://www.youtube.com/watch?v=fpAyan1fXCE

Kratos, I know Obama's a proponent of the single payer system. I just don't buy into the theory that he will circumvent law in order to achieve this. I don't think we will ever achieve that. Remember he and the dems, did try the 'deeming' process, but realizing the wrong on that, they dropped that attempt. There are too many dems that don't buy into that single pay theory. That is why it wasn't included in this bill and I don't believe it will be in any future bills either. Call me naive. But like I said...I'll take the wait and see approach.

I apologize for the conspiracy comment, Kratos. I wasn't directed specifically at you, but rather at people like the October guy above. But some of the things you've posted are being misconstrued by those conspiracy theory types.

[Mooseman33]

Mooseman, I'm not a big fan of this bill either. Don't get me wrong. But like I said before I'm on the opposite side of the coin. I see no problem with a government health care option. The key word being option.

I don't think I'm blind, Kratos. Maybe I'm being hopelessly optimistic. Maybe I don't buy into the whole conspiracy theory that you buy into that Obama's this grand dragon of the communist party and in 4-8yrs we will be a communist state. I've seen my premiums go up every year since I became successful... and for what? Profits for the insurance companies. I, unlike you, have no problem having my premiums go up if its for something and not to line someone else's pockets.

If you think its a stepping stone to world domination. Fine...I guess we all have to take a wait and see approach. We'll see especially considering the bulk of this bill won't take effect until 2014.

As far as immigration reform is concerned. Its another 'hot button' issue that the right is using fearmongering to push their agenda. Like healthcare, something needs to be done and deporting all those people is not only impossible but if it was, it would be much more costly than some type of pathway to legal status. I'm sure the bill they come up with won't be what I want, but at least, like healthcare, something is going to get done. The right has yet to come up with any serious, passable, legislation on either issue. Again the key words in the last statement being serious and passable.

Look, I understand everyone's frustration. Mooseman and Kratos, you know my background. But for those who don't, here it is, I went to high school in West Texas (father was stationed at Fort Bliss, Tx), I attended the Univ. of New Mexico on a football scholarship. I played my professional football in Arizona and N. California. Now I live in Las Vegas, NV. So I've seen the direct impact of both these issues most of my life. Doing nothing, IMO, has led to all the problems we have. I am a fan of Obama, for one reason...he's working on these issues. Do I agree with him at every turn? NO!! But, I absolutely don't agree with the alternatives presented by the right.

Thats just false, they have no shot of getting anything done in the way they want. Nancy pelosi is the devil, im 100% sure of it.
Harry reid is gone, u live in vegas, he is not keeping his seat.

which is why they will regain power in Jan. thanks to Nov. elections.
but until then, they are just ramming the public with bullshit....like this sad attempt at healthcare....

[Kratos]

Kratos, I know Obama's a proponent of the single payer system. I just don't buy into the theory that he will circumvent law in order to achieve this. I don't think we will ever achieve that. Remember he and the dems, did try the 'deeming' process, but realizing the wrong on that, they dropped that attempt. There are too many dems that don't buy into that single pay theory. That is why it wasn't included in this bill and I don't believe it will be in any future bills either. Call me naive. But like I said...I'll take the wait and see approach.

I apologize for the conspiracy comment, Kratos. I wasn't directed specifically at you, but rather at people like the October guy above. But some of the things you've posted are being misconstrued by those conspiracy theory types.

how will this bill impact the insurance you currently have? then connect the very clear dots.

[BgMc31]

how will this bill impact the insurance you currently have? then connect the very clear dots.

Healthcare premiums will continue to climb, but not at the level of almost 10% a year that I've been experiencing. Plus with some of the new government tax credits that will be offered under this new bill, I could see me premiums actually level off. So, I'm having a tough time connecting those dots, so please enlighten me.

[Kratos]

Healthcare premiums will continue to climb, but not at the level of almost 10% a year that I've been experiencing. Plus with some of the new government tax credits that will be offered under this new bill, I could see me premiums actually level off. So, I'm having a tough time connecting those dots, so please enlighten me.

What will cause your premiums to level off or slow down from 10%?
Tax credits? don't you mean The federal subsidy that would go straight to the insurer. How is this number not to be figured into the total amount the united states spends on health care as a percentage of GDP? How much would you be eligible for? You don't know? I'm shocked.

[bass]

Kratos, i am with you on this. i don't get why some just don't get it! some people look out and see a burglar robbing their home and just sit there pretending its not happening. what part of the mega tax dollars spent on this bill is not clear? what more do you need to see this is flat out robbery, even worse, we are becoming a socialistic nation. it saddens me because over 30 years ago i escaped a country that controlled our lives, but never thought one day it will catch up with me here, in the USA! Sunday was a sad day for me...lost one more element of freedom.

[TITANIUM]

C'mon T, as crappy as this bill is, this isn't government owned health care. Government owned health care would be a single payer system or even a government run health insurance. This bill is neither of those. You're more intelligent to fall for the rhetoric and fear mongering...I KNOW YOU ARE!!! C'MON!!!!

BgMc, I am just stating the facts that one would rationally conclude by this bill passing into law.

And I do not trust the government.

So, it's not rhetoric and fear mongering I am buying into.

I think the facts are indisputable, in my opinion.

If this was George Bush's administration passing this bill, you would be doing cartwheels in your living room, and through your football through the TV set.

I hate to pick sides, so I won't.

With all due respect to BgMc, who is being slammed as usual on his views here.

I like you bro, and if not for your views here, then the debates just would not play out like they do here.

I miss the "news" section, I'll try to be more active here, its just my presence is needed in other parts of the forum.

But, this is a breath of fresh air, for lack of a better term.

Best

T

[thegodfather]

Healthcare premiums will continue to climb, but not at the level of almost 10% a year that I've been experiencing. Plus with some of the new government tax credits that will be offered under this new bill, I could see me premiums actually level off. So, I'm having a tough time connecting those dots, so please enlighten me.

Artificial manipulation of the markets does not work BgMc... I don't know how many times Keynesian economic theory needs to be proven a failure for politicians and people to get it.

The massive amount of taxation that needs to take place for this bill to be funded and 'work' means that you will be paying higher premiums, only it wont be in the form of a premium. You will simply pay higher taxes elsewhere in the myriad of things that you pay tax's for. Have you ever heard the saying, "there is no such thing as a free lunch?" Well that statement has never rang more true than when speaking about government and economics.

Government is the REASON health care is in the sad state of affairs that it is in today. How then, BgMc, can you honestly believe that government is the one who can (and should) fix the problems and messes that THEY themselves created?

Meddling in health care by creating the pseudo-socialized health care system we have today such as Medicare and Medicaid, and enacting bills like ERISA and EMTALA have led to rising health care costs. I could go on and on about the specifics of the health care issues, but honestly, most people have no idea what they are talking about when it comes to health care policy. All that you people see is your 'premiums' or your 'co-pays' and have no idea about the amount of shit going down behind the scenes.

One of the most absurd parts of the bill is not allowing health insurance companies to turn down people for pre-existing conditions. "INSURANCE" is a measure of RISK. Let me give you an analogy to how this works, and then you will realize how absurd it is to cover pre-existing conditions, even though in liberal land it might "feel good" and give you "warm fuzzies" when you talk about it. Moral hazard and social responsibility are in FULL EFFECT in this illogical bill. Say that you own a car, and you don't have insurance on it at the time, but you drive it down the street and get into a very bad front end collision with your car, and there is $10,000 in damage. Well, you call up GEICO and want to purchase a policy, a new bill went into effect that does not allow them to deny you coverage on any pre-existing damage to your vehicle. So you purchase a policy from them, and then the next day you put in a claim for the front end collision you got into prior to the effective date of your new car insurance policy. That is absurd isn't it? That GEICO would have to pay for damage to your vehicle before it was ever covered under their insurance policy? Well that is exactly the situation with health care.

[durak]

Healthcare premiums will continue to climb, but not at the level of almost 10% a year that I've been experiencing. Plus with some of the new government tax credits that will be offered under this new bill, I could see me premiums actually level off. So, I'm having a tough time connecting those dots, so please enlighten me.

Silly rabbit.