As yet more proof of how insurance companies really really care about their customers, the LA Times is reporting Anthem Blue Cross is hiking rates by as much as 39% on many of its individual policyholders:
In a letter to the company’s president, Health and Human Services Secretary Kathleen Sebelius voiced serious concern over the rates, which go into effect March 1 for many of the insurer’s estimated 800,000 individual policyholders.
The increases have triggered widespread criticism from Anthem members and brokers, who say the premium hikes will put health coverage out of reach for some and very costly for others.
“With so many families already affected by rising costs, I was very disturbed to learn through media accounts that Anthem Blue Cross plans to raise premiums for its California customers by as much as 39%,” Sebelius wrote to company President Leslie Margolin.
While Anthem Blue Cross has not indicated the exact rate increase or how many customers will be affected by the increases, brokers who sell policies for Anthem Blue Cross have noted the increases are many and large, and the increases come on the heels of similar rate increases last year. Considering Wellpoint Inc., the parent company of Anthem Blue Cross, posted profits of $2.5 billion in 2008, I’d be curious to find out the company’s justification for the steep rate increases.
Or how about “These extraordinary increases are up to 15 times faster than inflation…”
and
“They said they were fielding numerous calls from customers angry over premium increases of 30% to 39%, after similar ones just last year.”
Lastly, “Some speculated that the company was moving to raise rates ahead of possible national healthcare reform, pending in Congress.” Almost like what the credit card companies did when those reforms were passed. My interest rate on my credit card went from 8.9% FIXED to 17.9% VARIABLE.
So do you blame the market for responding to these government “reforms”?
I blame my credit card company for responding to these ‘government reforms’. When I called and asked why my rate was changed they said it was due to a quarterly analysis of my account. An account of which I have never made a late payment, have a credit score of over 720 and even according to the person I spoke to said I had excellent standing with them.
They also said they sent me a letter notifying me of the change, which I never got.
Not that I want to defend credit card companies, but you don’t think government shares any of the blame? Because of restrictions they imposed on going after deadbeats, people like you and me with good credit have to suffer. But if many liberals don’t mind spreading the wealth (or misery) around when it comes to government, why should they object when the private sector does it?
No, I do not. Did you hear any of the stories of the people who would miss one payment or went over their limit? I heard some stories where people were paying 30% interest on their credit cards. On top of that, the minimum payment could be $100-$150. It would get to a point where it would snowball out of control and people couldn’t make payments.
How does punishing your consumers because the government imposed restrictions on how you handle some of them make sense?
Again, no one forces you to do business with these companies. Don’t like the way the credit card company treats you? Don’t own their card! Now how do I go about avoiding the property tax hike slapped on me last year?
How was I supposed to “not do business with these companies” when they raised my interest rate? I had a balance. Are you telling me I shouldn’t pay my bill?
How much did your property taxes go up?
Do you itemize on your taxes? If so, when your property taxes go up, you get more back from the federal government. I don’t complain about my property taxes because I get more back then.
You want to avoid your property taxes? Sell your house and rent. There, you don’t have to do business with the government either. Problem solved.
You must be joking. I used property taxes as ONE example, but surely you know that the government taxes everything, you can’t avoid it. Really, are ya serious?!
Sell my house and rent? Do you not think property tax increases affect renters as the increases are passed along to them?
I am sorry about your balance rate hike with a credit card company. I personally do not believe that credit cards should be able to change the terms after the fact on money already borrowed. But then again, my larger point (not directed at your personal situation), is that I am amazed people do business with those shady companies to begin with.
My point was that no one makes me do business/get screwed over by Mastercard, but there is no way to avoid getting screwed over by the government. Liberals seem to complain a lot about how unfair big businesses treat them, but again, my checkbook can walk away from them.
Well by your logic Zach, government “really really cares” about citizens when it hikes taxes, right?
When was the last time the government raised your taxes by 39%?
Does it need to be the magic 39% to prove my point? If Anthem had only raied by 18% would you be any less critical? I know Doyle & Dems increased taxes by about $5 billion last year. I don’t know what % that works out to, but it’s a lot. Especially during a recession.
I’m glad you agree that Anthem raising their rates is just unacceptable.
I’m glad you agree that government raising taxes is just unacceptable.
The difference is no one is forced to do business with Anthem. Try avoiding tax hikes though. But I wouldn’t expect a lecture from the Obama administration when states like Wisconsin lay heavy taxes on its citizens.
The 39% increase THIS YEAR was similar to the increase last year. So lets just say the increase last year was 25%. And the one this year is more like 35%. That is a 60% increase in rates in two years. I have never heard of taxes being increased by double digit amounts in one year, let alone two.
Looking at your example, your two year number is more like 68% because it compounds year over year. However, taxes have gone up double digit percentage when you factor all of them as a whole. Look at your property taxes, vehicle taxes (registration fees, wheel tax), gasoline taxes, sales tax, new taxes on cellular phone charges, etc – everything you pay taxes on, and you’ll find an overall double-digit increase from last year. No one person can look at a single tax and say my taxes only went up X%, because your taxes will fluctuate based on spending as well as anything imposed by the gov’t.