Secretary Sebelius: Insurance Companies Prosper, Families Suffer.
February 20th, 2010
U.S. Department of Health and Human Services Secretary Kathleen Sebelius today unveiled a new report, “Insurance Companies Prosper, Families Suffer: Our Broken Health Insurance System.” It is aimed at health insurance rate increases demanded by insurers across the United States. It also comes on the heels of Anthem of California’s quest for a 39% rate increase for individual insureds in California.
Secretary Sebelius scheduled an 11:30 a.m. news conference that was also available as a webcast. In answer to a question asking whether the insurers’ claims that the rate increases were reflective of rising insurance costs, Secretary Sebelius pointed out the following (echoed in the report):
- Insurer profits increased 250%.
- The 5 biggest insurers earned over $12.2 billion in profits in 2009.
- Executives at these insurers are earning up to $24 million per year.
- Huge advertising and marketing budgets drive up costs.
While the most current rate increases target individual policy holders, it is clear, according to the report, that group premiums will rise in a similar fashion without health care reform. “Leading experts have predicted that, without reform, these increases will continue, and the federal government and most states don’t have the legal authority to block or reduce health insurance rate increases.”
What would it mean to your business if Anthem sent your company a premium increase of 39%? What if a supplier increased a product by 39%? We would look for another supplier. Unfortunately, as the report makes clear, there are no other suppliers in most cases.
(Photo © healthreform.gov)
Similar Posts:
- 39% Premium Increase in California for Anthem
- Secretary Kathleen Sebelius Says Reform is Good For Business
- Gangster Government Stifles Criticism of ObamaCare
- Affordable Care Act Helps Fight Unreasonable Health Insurance Premium Increases
- Consumer Advocates Favored in Key Health Insurer Spending Provision
Tags: Companies Prosper, Families Suffer, Insurance Companies Prosper, Suffer
Posted in Insurance General | No Comments »