Monday, February 8, 2010

Sometimes the free market isn't such a wonderful thing

While Republicans and Tea Partiers vilify health insurance reform, the bad practices of insurers continue. It's important to remember that this is the status quo that they are fighting for tooth and nail.
President Obama's secretary of health and human services fired off a sharply worded letter to a California insurer Monday, demanding to know why it is raising rates for individual policyholders by as much as 39 percent.

The unusual salvo offers a reminder that, even as health-care legislation lies in limbo in Washington, the battle over surging health care costs continues in other venues.

Anthem Blue Cross of California sent out notices earlier this month to many of its roughly 800,000 holders of individual policies, informing them that the costs of their plans would sharply increase to cover rising health-care costs. The increases do not affect employer-provided plans in the state.
Hands off our healthcare so that insurance companies can jack up our premiums by a third doesn't seem like such great rallying cry.

2 comments:

Brenda Bowers said...

Not true. We conservatives know that much needs done to straighten out the health care system in this country. Both the Republicans and Democrats now in congress have been guilty of doing nothing or doing the wrong thing. What Obama and the fanatic Democrats are now proposing is the wrong thing in spades.

The free market is the ONLY thing that will work. But it has to be allowed to work and not have government offer favoritism such as the mandated state insurance markets which gives a few insurers the entire state to sell their product in and We the People are stuck with those few choices. Get the government and favoritism out of it and allow people to choose from the 1300 insurer in the United States and see what happens to the prices and the products. Competition always improves the costs and the products!

The free market has always and will always be the right way for free men and women who prefer to decide for themselves like adults what is best for them. This even applies in a "let the buyer beware" open market. companies who do not offer a good product at a fair price will soon go out of business. yes, some people will get burned by them before the truth comes out but the truth will come out. We humans have the intelligence to think for ourselves without some elite little educated clerk deciding what is best for us. BB

Pino said...

Anthem Blue Cross of California sent out notices earlier this month to many of its roughly 800,000 holders of individual policies, informing them that the costs of their plans would sharply increase to cover rising health-care costs.

I wonder if a new California law was just passed/implemented that would force California insurers to insure all people, regardless of pre-existing conditions?

Nope, I was wrong. They are doing it because the cost of insurance can never be less than the cost of care:

Costs have increased in the individual market, Anthem responded Monday afternoon, because the recession has led many policyholders to drop their coverage, spreading expenses among a smaller pool of customers. Additionally, those remaining with the company tend to have, on average, greater health needs than those who have dropped coverage.