Sebelius wants answers after Blue Cross 39% rate hike

[Perky]

Sebelius wants answers after Blue Cross rate hike

HHS Secretary Kathleen Sebelius sent a letter to Anthem Blue Cross today asking the company to justify its recent 39 percent premium hike after its parent company reported $2.7 billion in profits in the last quarter of '09. The letter is another example of the administration's aggressive targeting of insurance company profits and practices as the president and congressional Democrats try to explain why reform is needed. Democrats are struggling to move the stalled health reform legislation.

Sebelius writes:

I believe Anthem Blue Cross has a responsibility to provide a detailed justification for these rate increases to the public. Additionally, you should make public information on the percent of your individual market premiums that is used for medical care versus the percent that is used for administrative costs. Policy holders in the individual market deserve to know if their premium increases would be invested in better medical care or insurance company overhead costs like salaries, profits, and advertising. I am aware that the State of California is investigating this matter, and urge Anthem Blue Cross to cooperate fully. In the meantime, I will be closely monitoring the situation.


http://www.politico.com/livepulse/0210/Sebelius_wants_answers_after_Blue_Cross_rate_hike.html?showall

[bigdarryl]

1. 39% DAAAAAAAAAAAM!!!!!!!

[alsame]

2. Greed is the answer. nt

[TheDebbieDee]

3. Sebellius was the Insurance Commissioner for the state of Kansas

for many years before she became Governor. She's OF the insurance industry...maybe she can just call someone up on the phone and get some answers.

[DJ13]

4. The letter is another example of the administration's .....

.....aggressive targeting of insurance company profits and practices


lol

[peace13]

5. Ask away Kathleen.

These increases are the story of our lives. Nothing new. A strongly worded letter is just what the doctor ordered.

[BlueIdaho]

6. This is why health care reform won't go away.

Health insurance companies continue to raise premiums. Why? Because they can. They continue to drop subscribers. Why? Because they can. They continue to refuse treatment due to "pre-existing conditions," raise co-pays, and force people into smaller pools to slice and dice benefits and maximize profits. Why? Because they can. This is not going away. If no meaningful change comes this year, it may come next, or the year after. Nothing changes the fact that Americans - our family and our friends continue to suffer at the hands of a for profit industry. That problem is only becoming worse. When will the insurance companies be happy? When no one can afford to buy their product? As Bob Dylan said - "There's a hard rain gonna fall."

[Michigan-Arizona]

10. Your answer is spot on! n/t

[TheKentuckian]

7. Aggresive?!? Wake me up when somebody, anybody goes about 1/2 way to TDR

Actions are aggressive not letters of interest. She knows exactly why the fuck the greedy assholes keep jacking up rates and cutting benefits.

[Tom Rinaldo]

8. Because there is no effective public competition, that's why

Blue Cross has nothing to fear. Worse case, they cut their rate increase in half and still raise premiums by 20% in one year, so people like Sebelius can act like they won one for the public. It's like artificially raising your price to the moon before throwing a half price sale. Insurance companies remain in the drivers seat and nothing on the legislative horizan is going to displace them.

[Phx_Dem]

9. Bad for the insured, but great for the health care debate.

Thanks Blue Cross! Your unbelieable greed may be what pushes health care reform over the finish line for us!

[cags]

11. You didn't hear this from me, but I know an employee of Blue Cross and she believes the hike is for

bonuses. Dont know if its true, but if employees think that, that is just wrong.

[BadgerKid]

14. Denying medical claims due to cost should be rewarded -- NOT!! n/t

[GrantDem]

12. Anthem's response to the strongly worded letter...

FUCK OFF!

[asdjrocky]

13. CEO and board wants more money.

Corporations exist for one reason and one reason only, to make the biggest possible profit within the law.

That's who your masters are now.

[zulchzulu]

15. Well, figuring that everyone got a 39% raise at work, what's the big deal?

:sarcasm:

[Orsino]

16. It's because Congress bravely kept them from hiking it 40%. n/t

[pecwae]

22. +1.

[graywarrior]

17. She wants answers, while we want to rip their faces off.

[avaistheone1]

31. She is useless

except to the corporations.

It is likely Sibelius will get her answers, but watch her when she does - she will do nothing about them.

Enjoy the kabuki dance.

[IndianaGreen]

18. As long as you have a for profit health care system, you will have this sort of thing happen

even if you have the Senate's HCR become law, you will still have this problem.

[Blue_Tires]

33. AND as long as

healthcare execs and lobbyists are given the first seat at the negotiating table and ghostwriting legislation, no real reform can occur

[glowing]

19. She has nothing but a strongly worded letter. There is nothing meaningful she can do.

There is no law regulating how much profit a corporate entity makes. A coporation's sole purpose is to make profits. Making profits off of one's health is immoral. Instead of approaching this as a fiscal problem, it needs to be addressed as a moral issue.

The increase probably was due to the 14,000 losing health care all everyday.. that's money out for the ins. co's when unemployed drop coverage.. or employers drop coverage to save their business. AND due to the financial pumping into our politicians.

[jeanpalmer]

20. In the meantime,

I will be closely monitoring the situation.

lol.

They must have missed the deadline for sending in their periodic campaign contribution. :shrug:

[FrenchieCat]

21. this is a big story here in the Bay Area......

Got good coverage on KGO this evening. Folks are pissed at Anthem Blue Cross.

[shimmergal]

23. Could this be used in this year's

California elections...?

I understand both houses in CA have passed a version of single payer -- could public outrage be leveraged enough to insure actual enactment of a law...?

and then if Anthem Blue Cross didn't like it, they could just go off and sulk...?

Just a nice speculation?. But I do think our best route to cost containment and near-universal coverage is still going to be thru the states -- once it's working somewhere -- lobbyists will have a heck of a time putting the genie back in the bottle.

[CrawlingChaos]

24. This is what I hope and pray for now

I'm in the Bay Area and got hit with this increase - it's brutal! We'll have to cut out creature comforts to pay it, but what will we do without in order to pay when they raise it again? And now we REALLY can't afford to go to the doctor - period.

We are one Democratic governor away from single payer. That would be ....beyond wonderful. And think of the employers who would want to come to California with a single payer system in place. I'm so terrified of Meg Whitman and her millions right now.

[Mz Pip]

25. Blue Cross needs the extra money

so they can make all those unlimited contributions to candidates that they like.

Just more money to be funneled into anti-health care reform ads and candidates.

[golfguru]

26. SINGLE PAYER the only way out of this robbery

Put all the CEO's of health insurance out of business
and hire the workers to work for the government.

[w4rma]

27. She knows good and well why they did it. Yet, she beats around the bush in her "angry" letter.

This is why I didn't support her for this job. It's probably why she was given this job.

[Blue_Tires]

28. Answers?? Are you THAT goddamned dense, lady?!?

So is there going to be any ACTION now? Or just more strongly worded letters?

Of course the Senate will play dumb, since BCBS is bankrolling half their re-election accounts...

[Blue_Tires]

29. ttt

[brentspeak]

30. And this is the useless product Obama and the Dem leadership wants to force us to purchase

[NorthCarolina]

32. Doesn't this increase come on the heels of a record rate hike last year? nt