Blue Shield has lost their damned mind
January 07, 2011 By: Frogette Category: California, Economics, Health
It was announced this week that Blue Shield of California is planning a 59% rate hike. 59% for health insurance, after Obamacare has passed?! They must think they’re Anthem Blue Cross who got reamed in 2010 for even suggesting a 39% hike. I guess insurers think that rate increases are like a game of poker you just keep upping the ante. To add insult to injury they said in a statement that their decision had:
almost nothing to do with the federal health reform law and that ultimately the law will help slow down health care costs.
Sounds to me like Blue Shield has just gone completely insane.
January 9th, 2011 at 7:30 am
These rate increases are predictable consequences of Obama’s efforts to fine people for not being able to afford the premiums. If you coerce people into buying a product, the price goes way up. This is especially true of insurance where there is no real competition due to exemptions from anti trust laws.
If you think premium increases are bad now, wait until the fines go into effect.
After car insurance was mandatory in California, premiums skyrocketed. The insurance companies colluded to create a phony “insurance crisis” to pull it off.
January 10th, 2011 at 8:56 pm
Libhomo – These increases are really the result of health becoming a “for profit” industry. Market demand for staying alive? Inelastic. We need to go back to not for profit health care, and soon or it’s all over but the shouting.
January 12th, 2011 at 2:28 am
@2
The Blues are technically nonprofits already. Instead of dividends they put their Surpluses into Reserve. Google their annual reports and look at the balance sheets.