Health Reform will "RUIN" the Health Insurers

[longfisher]

That's what was said in 2010 during the debate.

2010 and early 2011 turned out to be the most profitable years ever for the health insurance companies.

The most important contributors to this profitabilty were:

1) The backroom deal that Obama cut with Big Pharma, AMA and the hospitals to reduce their costs voluntarily so they'd not be the principle targets of the reforms and so they'd keep their big bucks out of the fray.

2) The reversall of "the trend" (the seemingly impaccable quarterly increase in the cost of medical care from providers (hospitals, doctors, imaging centers, etc.). The trend's been about 10 - 12% per year for decades. When all the numbers are in for 2010 many expect the trend to have reversed itself and have been NEGATIVE by about 3%.

3) Implementation of transitory Federal exchanges for those with pre-existing conditions (www.pcip.gov) which provided a much needed outlet for those who could not find health insurance due to pre-existing conditons.

4) The now decade long trend of insurers successfully offering what are called Consumer Drive Health Plans (CDHPs) which are really merely bare bones insurance offerings without copays, with high deductibles and with poorer coverage as solutions to the high cost of insurance. THESE POLICIES ARE PURE CRAP AND VIRTUALLY ANYONE OLDER THAN 4O WHO BUYS AND KEEPS ONE OF THESE FOR A DECADE WILL WAKE UP ONE MORNING WITH CHRONIC CONDITIONS THAT WITH BETTER INSURANCE AND, HENCE, BETTER CARE WOULD HAVE KEPT THOSE CONDITIONS AT MERELY PERIODIC TO ACUTE. MOREOVER, BECAUSE THE CUSTOMER NOW HAS PRE-EXISTING CONDITIONS HE CAN'T BUY BETTER INSURANCE FROM ANOTHER INSURER AS HE WON'T BE APPROVED. FURTHERMORE THE EXISTING INSURER WON'T ALLOW HIM TO TRADE-UP TO BETTER COVERAGE. HE'S COMPLETELY TRAPPED.

These policies are good for one party, the insurer, AND THEIR THE MOST DETRIMENTAL, ANTI-SOCIAL AND DAMAGING THING THE INSURERS HAVE THOUGHT OF TO DATE.

These policies are the classic example of how an insurer creates health insurance bottlenecks out of whole cloth (unnecessary and unjustified rate increases) and then capitalizes on them by shifting the claims risk to the customer instead of themselves. Raise the prices so high that every business will scream in pain and then offer them a solution that makes their workforce sicker. It's like raising the price of a new car to such heights that the customer has to opt for one without wheels and tires.

Despite this amazing profitabiolity, the insurance company rates continue to climb. In my state, only Humana has decided to pass on some of the savings to its customer and has stabelized rates. Every other insurer views Humana's actions as herecy and unsustainable and they are socking away the cash and paying the highest dividends to share holders ever. Wall Street just loves it and has improved the ratings of the health insurer block to, in many cases, a buy recommendation.

They won and you and middle class in which most of us reside lost, big time.

News of rate increases across the nation abound and some of them are again in the 30 - 40% range. The Feds are finally getting into the act of at least exposing the rate increases for what they are, highway robbery. The DHHS will shortly require insurers to publicly justify their rate increases by posting the rationale for them on both the DHHS site (so the DHHS can comment on whether they are rational and necessary) and on their own webs sites, as well.

You see, the Feds don't have the authority under existing law, not even under Health Reform, to directly regulate rates. That's the states' job. Some do well. Some don't do anything at all. So, the most the Feds can do is to expose the insurance companies' wrongdoing.

Anyone who's still on the side of the insurers had best take note. They're killing the middle class both figuratively through their incessant rate increases and CDHPs which shift all the risk of claims to the member and literally by denying us affordable care which simply makes us sicker...all for the benefit of Wall Street. And, the Republicans make this possible.

REPUBICANS MAKE ME SICK, is what everyone should be saying for they surely are doing so by being the henchmen and protectors of these insidious sociopathic companies. When will Republicans in the middle class awaken to the rape of the middle class by the Republican party? I'm beginning to believe it's an IQ test.

LF

[Glenn W]

2010 and early 2011 turned out to be the most profitable years ever for the health insurance companies.

LF

When one makes statements to support a position that are easily verified, it pays to have your facts right.
The fact of the matter is, 2010 is far from the most profitable year ever and indeed profits are below 2009 levels.
For example Wellpoint Inc ( the largest Investor owned health insurer, eg "Anthem", and Humana posted the following results for 20010 compared to 2009:

Wellpoint Net Income: 2010- $2.89 billion on equity of $23.8 Billion--- ROE- 12.1%
Wellpoint Net Income: 2009- $4.75 Billion on equity of $24.9 Billion--- ROE- 19.1%

Humana Net Income: 2010 $1.10 Billion on Equity of $6.9 Billion ---- ROE- 15.9%
Humana Net Income: 2009 $1.04 Billion on Equity of $5.8 Billion ---- ROE- 18.0%

The facts are opposite of the basis for your claim---- so now how does your arguement change?

BTW, Wall Street is becoming bullish on long-tail line (life & health) insurers not because of your allegations, but rather because of upward prospective pressure on interest rates which will boost the current dismal investment income earned on reserves.

[worldcat lemon]

fee-for-service and bartering. I'm tired of insurance running healthcare! jmo

[longfisher]

http://www.chicagobusiness.com/artic...-profits-surge

How does your arguement change, Sir?

LF