By Chad Terhune
Los Angeles Times, March 6, 2013
Despite objections from regulators, health insurers Blue Shield of California and Aetna Inc. are proceeding with double-digit rate increases that state officials said were unreasonable.
Officials at the California Department of Managed Health Care said increases that average more than 11% for about 47,000 individual and small-business policyholders of Blue Shield and Aetna were unreasonable. But state officials don’t have the authority to reject changes in premiums, and increasingly health insurers refuse state demands to lower rates.
“I am disappointed that after lengthy negotiations, Blue Shield and Aetna were unwilling to bring their proposed health plan increases down to a reasonable level,” said Brent Barnhart, director of the Department of Managed Health Care.
Last year, Aetna led the way for the industry’s more defiant stance by proceeding with an 8% rate hike on some small-business policyholders despite objections from the state insurance department. In January, California Insurance Commissioner Dave Jones scolded Anthem for proceeding with an 11% premium hike for small businesses that he determined was excessive.
http://www.latimes.com/business/la-fi-health-insure-rates-20130307,0,1301629.story
Comment:
By Don McCanne, M.D.
It is no surprise that in California – a state that can review insurance premium increases but has no power to control them – private insurers are proceeding with premium increases deemed to be unreasonable. The surprise is that our elected representatives continue to keep in charge of our health care spending an industry that uses us as instruments to achieve their own business ends.
Imagine a scenario in which Medicare would demand unreasonable increases in premiums. It would never happen. Medicare is a service model designed to serve us, the people. Private insurers are business models designed to serve their own business interests.
Did anyone ever think that it might be a good idea to dismiss the private insurers and provide Medicare for all of us?