wilburcarp
03-02-2010, 08:51 PM
Health Insurance Rate Hikes Not Driven by Underlying Medical Costs, Says Report
http://blog.healthcareforamericanow.org/wp-content/uploads/2010/03/picture-6.jpg
The insurance companies have been taking an incredible amount of heat lately for their stunning rate increases. Anthem kicked things off with their 39% increases in California, but these were not isolated hikes. WellPoint, Anthem’s parent company, is increasing rates by double digits in at least 11 states. And other big insurance companies are hiking rates in at least half a dozen more states.
Insurance company CEOs have been called to testify before Congress, with more hearings to come. This has put the industry on the defensive and they’ve taken to the media to deflect criticism and explain their rate hikes. Their spin centers on one talking point, elucidated by Angela Braly, CEO of WellPoint, in today’s Wall Street Journal:
WellPoint Inc. Chief Executive Angela Braly is facing her biggest test yet as the nation’s largest health insurer comes under fire for its plans to raise rates as much as 39% in California.
So far, Ms. Braly has chosen to fight back. Instead of issuing a Toyota-style apology, she is turning her critics’ argument around, citing rising health-care costs driven by doctors and hospitals, which she says aren’t addressed by current health-overhaul bills.
The strategy, on display last week during a contentious House hearing focused on the rate increase, could get another airing Wednesday, when Ms. Braly and other top health-insurance executives are expected to appear before the Obama administration’s top health official to discuss health-care premiums.
The idea that insurance rate hikes are driven by increases in the underlying cost of medical care has also been pushed by AHIP, the insurance industry’s top lobbying front group.
Given the health insurance industry’s duplicity on everything having to do with the health care system and their role in it, it shouldn’t surprise anyone to find out that this talking point is a straight up lie.
http://blog.healthcareforamericanow.org/wp-content/uploads/2010/03/picture-6.jpg
The insurance companies have been taking an incredible amount of heat lately for their stunning rate increases. Anthem kicked things off with their 39% increases in California, but these were not isolated hikes. WellPoint, Anthem’s parent company, is increasing rates by double digits in at least 11 states. And other big insurance companies are hiking rates in at least half a dozen more states.
Insurance company CEOs have been called to testify before Congress, with more hearings to come. This has put the industry on the defensive and they’ve taken to the media to deflect criticism and explain their rate hikes. Their spin centers on one talking point, elucidated by Angela Braly, CEO of WellPoint, in today’s Wall Street Journal:
WellPoint Inc. Chief Executive Angela Braly is facing her biggest test yet as the nation’s largest health insurer comes under fire for its plans to raise rates as much as 39% in California.
So far, Ms. Braly has chosen to fight back. Instead of issuing a Toyota-style apology, she is turning her critics’ argument around, citing rising health-care costs driven by doctors and hospitals, which she says aren’t addressed by current health-overhaul bills.
The strategy, on display last week during a contentious House hearing focused on the rate increase, could get another airing Wednesday, when Ms. Braly and other top health-insurance executives are expected to appear before the Obama administration’s top health official to discuss health-care premiums.
The idea that insurance rate hikes are driven by increases in the underlying cost of medical care has also been pushed by AHIP, the insurance industry’s top lobbying front group.
Given the health insurance industry’s duplicity on everything having to do with the health care system and their role in it, it shouldn’t surprise anyone to find out that this talking point is a straight up lie.