Insurance Companies to raise prices, dump consumers

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[Lani]

Insurers Set To Raise Prices, Walk Away From Consumers: Goldman Report http://www.huffingtonpost.com/2010/03/05/insurers-set-to-raise-pri_n_487684.html
Pay up or die.  Insurance companies don't care which one you pick.

In a conference call organized by Goldman Sachs Global Investment Research, Steve Lewis, a highly regarded broker at the world's third largest insurance broker, Willis, painted a picture of the health insurance market in which employers seem likely to be priced out of coverage.

Noting that "price competition" between insurers was "down from a year ago," Lewis relayed that "incumbent carriers seem more willing than ever to walk away from existing business."

The phenomenon of insurers pricing their policies beyond where consumers can afford it seems to be already taking place. Last month Anthem Blue Cross told customers it would hike their health insurance premiums by as much as 39 percent (with the expectation that some would drop coverage altogether). In December, the Huffington Post reported that Aetna was planning on losing more than 600,000 customers by raising prices on their consumers in 2010.

[Jaime from Wasilla]

I just got dinged for an additional $56 per month in payroll deduction because the health insurance in our group plan went up this month.  I'm not happy about, but what choice is there? I heard about a company where it was going up $300 per month per person.

[daMamma]

Blue Cross & Blue Shield raised their rates beginning in January by as much as 47% for some people and companies in Massachusetts.  That state requires everyone to buy insurance or be fined.  Many companies are opting to pay a fine for not providing employees with insurance because it is far cheaper to pay the fines.

I think they are all pulling this stunt now because they are convinced that the HCR bills are dead in the water.  Without a comprehensive HCR, insurance companies have cart blanch to do as they will and no one to stop them.

[Lani]

I read some of the testimony of an Anthem CEO, trying to explain its rate hike.  All about ensuring the best care, etc.  Neglected to mention profit margins, salaries and bonuses.  Neglected to mention keeping the shareholders happy (and she has stock options).

I don't understand why these companies are not labelled as unAmerican.  In a time of economic crisis, they are denying care and killing people.  Shouldn't they be rallying, waving the flag, and standing with the country.  (Nice PR, too.)  Same with the credit card companies jacking rates to 29%.  It's more like they are sucking the last of the life out of the US before it dies.

In my state, one company has a stanglehold, and it is about to raise its rates another 8%, about 8 months since the last increase.  My insurance company has thrown in the towel and will close down at the end of March.  The company with the monopoly charges more than double per month what I am currently paying.  I honestly do not know what I will do.

[daMamma]

I feel for your plight.  And understand it very well.  We HAVE to have HCR, and we need it now.

[daMamma]

Insurance companies in Massachusetts sue to raise rates.  It seems that for the first time the state insurance commission has decided to deny a huge spike in rates, the health insurance industry is not pleased with this news as they had planned up to a 39% rise in their rates to small businesses and individual buyers.

from the Boston Globe
http://www.boston.com/yourtown/watertown/articles/2010/04/06/health_insurers_sue_to_raise_rates/

A half-dozen health insurers yesterday filed a lawsuit against the state seeking to reverse last week’s decision by the insurance commissioner to block double-digit premium increases — a ruling they say could leave them with hundreds of millions in losses this year.

The proposed rate hikes would have taken effect April 1 for plans covering thousands of small businesses and individuals. Insurers wanted to raise base rates an average of 8 percent to 32 percent; tacked on to that are often additional costs calculated according to factors such as the size and age of the workforce.

Yesterday’s legal action sets the stage for a showdown between state regulators and the health insurance industry.

In their request for an injunction, the health insurers are asking the Superior Court judge to let their proposed rate increases take effect or, barring that, require that the increases be collected from customers and put in escrow until the lawsuit is resolved. That way small businesses and individuals wouldn’t be faced with paying large lump sums later in the year if the judge eventually ruled in favor of the insurers.

[Lani]

My insurance company has left the state and turned us over to another company - with an immediate 25% increase.

It's like the credit card companies - grab every penny you can before any reform goes into effect.

[daMamma]

My insurance company has left the state and turned us over to another company - with an immediate 25% increase.

It's like the credit card companies - grab every penny you can before any reform goes into effect.

They have been pushing for a rate hike for months and had already sent out their notices to small businesses in January about the rise in premiums.  Gov. Romney (mittens) made it mandatory that everyone must buy health insurance or face a fine for every month they don't have it. 

With so many millions of new customers, I'm not exactly sure how they figure an operating loss for 2009.  Also with the negotiated rates at less than cost of service from hospitals and doctors, I'm not sure how they figure to be losing money there.  Amazing.  I was uninsured when I lived in MA, (couldn't afford their rates)  and I always ended up paying more than twice for services than insurance companies were charged for the same thing. 

Many of my friends that work in the hospitals and doctors offices told me that insurance companies negotiate to pay lower rates for medical services or they would refuse to cover anything at all.  They have the medical field over a barrel when it comes to paying for things.

[bonefish]

That's true, daMamma. Any difference between the negotiated price of care (or pharmaceuticals) and the actual cost is, if I remember correctly, "refunded" to the insurance companies. My lil Sis worked for one of those interstate hospitals for years. She was one of those in charge of "refunding" monies to insurance carriers. She became so disgusted with the whole racket that she quit and found herself another job.

(i will ask my pharmacist to explain all this to me again next time i stop in... will write to down like i should have the first time)

[Centerline]

Let the shenanigans begin.  Without a single payer system, watch how many loopholes develop. 

[daMamma]

Let the shenanigans begin.  Without a single payer system, watch how many loopholes develop. 

Oh my goodness, ain't it the truth!

[Electrolass]

Yes, insurance companies are stepping up the game.  This was to be expected.  They know that their profit margins are about to be reduced,  and many will bow out of the game.  This also is to be expected.

My research regarding health care began with the financial reports of the major and some minor carriers.  I chose this venue because the the ledges and the stock reports tell the truth.  Federal law mandates it.  The stockholders must be kept advised of the financial health of the companies in which they invest.  This was a bi-product of the Enron years. 

I found within those financial statements the answer to why my rates were hiked up 21%, and I imagine why those of others were hiked up that much and more.  Once again, I refer back to the year 1999, when the Gramm-Leach-Bliley Act was passed, and the lines separating the various financial institutions were eradicated and along with the various protections. 

Point of fact....  I received a new privacy act statement from Premera Blue Cross, the company under which I am now insured through a company plan.  They now must refer to the Gramm-Leach-Bliley Act (GLBA1999).  They can no longer refer to it as the "Privacy of Information Act" as they have for a decade.  We all accepted that our information needed to be protected, but few of us grasped why.

For a decade, investment banks, traditional banks, mortgage insurers, health insurers, and practically any other institutions that deal in the gathering and collecting of money for re-dispersal have been allowed to exist under a single "umbrella" organization.  GLBA1999 explains why the insurance companies are able to use your credit rating as a means of justifying a rate hike.   The words "financial entity" have replaced "financial institution."  Why?  Because an institution would be self supporting, a stand alone operation.  "Entities" work within a larger framework.  So, while your credit card company, your health insurer, your life insurer, and your bank have been sending out copious pamphlets explaining your rights under the law (but not referencing the actual law), they have been playing roulette with your investments, your insurance, your personal information and basically the fabric of the economy as it pertains to every individual in this country. 

Many moons ago, I posted an excerpt from a statement sent to me by State Farm outlining the history of changes to regulations that affect my insurance.  It spanned from the 1930's when laws were passed to protect Americans from being bilched by banks (the formation of the Federal Reserve, etc), all the way to the present, and the inception of GLBA1999).  What I saw in this document was the meticulous dismantling of the laws passed to protect us culminating in the passage of a law that opened the doors to what has amounted to a free for all in the world of financial management.

Looked at from this perspective (it is but one, and it is an opinion), it becomes plain that while we, as the insured, see health insurance as a basic right, insurers see our policies as a number on a tally sheet, and GLBA gave them the tools to manipulated those numbers as they see fit.

We must stand firm against any attempts by either the insurers or their parent financial "umbrella organizations" to bully us into giving it them.  We must believe in the attempts by our elected officials to curb their greed.  It won't be easy, and their will be some long hard months ahead, but we are on the right road.  At least we aren't standing in bread lines (some are and we must be strong for them as well), and we have good Congressman who need our support.

[Ripley in CT]

Ok, I need some advice.  I posted a little bit of this on the Flats open thread yesterday.

I got mail yesterday from Anthem BC/BS, my COBRA provider.  It was a bill for an outstanding balance of $398.00!!  Due by May 1!!   I pay my premium faithfully every month and did not understand.  

So I called.  The man told me that my former employer had raised the premiums LAST AUGUST and that since I had been under-billed by $23 a month these last 9 months, they took what I owed out of my last two month's premiums and that left me with a balance for both March and April, two months I had paid.   As you know, if you miss a month, you get dropped.   I pried and found out that my former employer had not notified Anthem of the change until April, that's why I was not billed for it.  so, in other words, NOT MY FAULT!!  I told him I had a real problem with this and needed more time to pay off what they say I owe.  I also made it clear that I had never been told that my premium had been raised.  As far as I am concerned, I STILL haven't been notified.  At least not in writing.  That's illegal, I think in CT.  Anthem said they just bill for what the employer says to bill for.  And since they just recently told BC/BS the rates had increased, they were obligated to charge me now.  

This man called his supervisor and she granted me 2 MORE DAYS.  She said they couldn't give me any more because then they would have to change the due dates for all my forward payments, too.  That's when I went ballistic.  I told the guy on the phone that I would be contacting my Attorney General and anyone else I thought should know about this.  His response?  He told me this was an "optional plan" and if I was unhappy, I could opt out!  Can you believe it?  I want that bunghole's job next.

So, I shot off an e-mail to AG Richard Blumenthal, Governor Jodi Rell, and the CT Insurance Commission.  I also notified my lawyer, because it looks like my former employer, who I am suing, broke the law AGAIN by not notifying me of the change in premium.  AND Anthem pretty much stole my money.  I'll be making follow-up calls on Monday.  

Any advice from you intelligent, thinking people would be appreciated.  Contact me through the forum messages if you need to.  I don't always check the forums because I get lost easily!  

Thanks.  

If it's not one stupid thing, it's another lately :|

[Irishgirl]

Wish I could help Ripley, but I have no knowledge of the system. I just wanted you to know that I am aware of your situation and am hoping that it gets resolved. 

[Ripley in CT]

Wish I could help Ripley, but I have no knowledge of the system. I just wanted you to know that I am aware of your situation and am hoping that it gets resolved. 

Thanks, Doll.

[Gramiam]

Ripley, I believe you have taken all the right steps to put this right. Your attorney is the one to advise you on the issues as he is in charge of the suit etc. Good that you raised hell with the politicians as well. Could be the handle they need to nail Anthem and the other greedy buggers! You go girl!!

[bonefish]

I agree with Gramiam. Likely the one who has the knowledge to do something about the immediate legal aspect of this is your attorney.
Keep after the politicians and your state insurance examiner. You've been blindsided by your (putative) employer and now by your insurance company. Maybe your state's attorney general would be interested, too?

Good luck to you and don't back down.

[Ripley in CT]

Bonefish, my AG was the first person I wrote to.  Richard Blumenthal.  He's also running for Governor next.  He's wonderful.  I met him once.  Good guy.

When I talked to my lawyer on the phone, I didn't realize at the time that I was supposed to have gotten written notification of the rate change.  I found that  out later from a well-informed client.  I sent my lawyer a copy of the e-mail I sent to Blumenthal, though.  It's in there.

[Lani]

If it's ok with your attorney, take the story to your local media - papers and tv news stations.  That seems to be the only way to get a quick response from the insurance cartel.

[Ripley in CT]

If it's ok with your attorney, take the story to your local media - papers and tv news stations.  That seems to be the only way to get a quick response from the insurance cartel.

Nope can't go to the papers on this.  I'm in the process of suing the former employer, whose fault it is in the beginning,  already.  I need someone ELSE to do the dirty work on the insurance company... or do their jobs, whatever works.  I sent another thing to the Insurance Commission.  I hope to have news by Monday.  Or make news by Monday!