Health Insurers Threaten Rate Hikes

[Joanne98]

For OpEdNews: Robert Parry - Writer

Reprinted from Consortium News

Though looking forward to millions of new customers who would be compelled by the U.S. government to buy health insurance, the insurance industry is threatening to raise premiums across the board if more of its demands are not met.

Industry representatives put Congress and the Obama administration on notice that if health-reform legislation doesn't send even more new customers the industry's way or if a windfall profits tax is included, the industry would hit businesses, individuals and the government with higher premiums, effectively defeating one of the initiative's top goals, reining in ever-rising costs.


The industry's chief complaint, which was raised in connection with an already-industry-friendly bill cobbled together by Senate Finance Committee chairman Max Baucus, is that the legislation would push 29 million more Americans into the insurance market, but that they might be the sickest and thus costliest people.

The industry wants more of the estimated 25 million still uninsured – especially healthy, young people – to be compelled to buy policies, too. Without more healthy customers added to the mix, the industry says it will have no choice but to raise rates.

"The consequences of this would be an upward spiral; rate shock to everyone who stays in," Karen Ignagni, president of the industry group America's Health Insurance Plans, told the Washington Post. "This legislation will fail the test of affordability for individuals."

The industry's warning comes after its lobbyists won an important victory in the Senate Finance Committee, defeating amendments that would have added a public option, a government-run program that would compete with private insurers to hold down costs.

Private insurers also bristled at an idea floated by House Speaker Nancy Pelosi, a windfall profits tax on extra money the industry might make from the influx of millions of new customers, many qualifying for government subsidies.

Robert E. Zirkelbach, a spokesman for America's Health Insurance Plans, told the New York Times that a tax on windfall profits “would lead to higher premiums for families and businesses” because the added expense would be passed through to customers.

However, it was not clear why insurers would worry about a windfall profits tax if they were also concerned that new customers would be a financial burden.

continued>>>
http://www.opednews.com/articles/Health-Insurers-Threaten-R-by-Robert-Parry-091010-61.html

:nuke:

[Christa]

1. As much as I hate violence

I feel it's time for a revolution. These bloodsuckers has to stop or BE STOPPED. They are the cause of thousands of people DYING every year, and we let them get away with it??

NO MORE. They have to be stopped.


*

[TheCoxwain]

25. I particularly like

the idea of lining up the executives and insurance company lobbyists on top Sears tower and giving them a gentle push ...


One by one ...

and televise this

live !!!

as they drop dead ( excuse pun)

[ixion]

2. They're doing more than threatening. They're raising rates

Mine went up 9% this year.

[annabanana]

3. It's America vs the Insurance Industry. . How could it

be any clearer than that?

[napi21]

4. This sounds like the BEST argument for a Medicare like option

that I've heard so far! Offer that option to EVERYONE wether they currently have ins or not, THEN let the bloodsuckers raise their rates to whatever they want! They just won't have any customers left to pay them!

[joeycola]

5. And they will have 3+ years to do it. Reminds me of credit cards where

Congress and its 'wisdom' allowed so much time before the bill is actually enacted.

[blueworld]

6. And if states can opt-out it will get worse. Wake up the Congress. n/t

[OHdem10]

7. Is this not the result of discussions on the HILL??? Senators and

House Members mulling over the idea of Mandating that every
American buy health insurance. Activists letting their
voices be heard. Mandates not exactly popular with Americans.

Insurance Lobbies observed possible waffling and bingo
the threat. You bet the Insurance Companies want all these
potential new buyers. If there is not a mandate, the Insurance
Companies see this as a loss for themselves.

Let's get real. They will up the Premiums anyway. This is
how they make money. Pretty soon they will price themselves
out of the market. They have no choice. The elites demand
Wall Street make money for them quarter after quarter. The Insurance
companies have to raise premiums in order to meet WS earnings.
If they do not meet earnings and profits, the ratings companies
can destroy them. It is an endless cycle . This is what "for
profit" health care is all about.

Yes, they threaten but remember they will either raise premiums
or deny coverage, cut coverage anyway in order to make profit.

The HIR Plan is a big fat bonanza to Insurance Comapanies and
they will fight to keep it. Mandate People buy insurance or
we will raise premiums.

[donco]

8. We still have a big stick

that there plenty worried about, repeal of the ant-trust/monopoly some of the bigger insurance companies have.

[many a good man]

9. Profits most threatened by losing exclusion and recission

Not being able to dump people who are actually sick is the biggest threat to their business model.

For reform to be successful we have to implement the model of a single risk pool and take out the profit motive.

[mbperrin]

10. No threat to it. Our rates are going up next year by the same amount

as our step raise. How convenient.

In addition, prescription drug costs are going up, so we'll actually take home less next year for a somewhat worse plan.

Single payer is the answer, nothing less.

[depakid]

11. Yep- it's a promise

This is an abusive, sociopathic and parasitic industry.

And Obama's dead wrong about them. These are NOT good people.

[Gman2]

12. Obama is suckering them again. They think they are in charge.

then, when they think they are teflon, and their rhetoric is hostile and deadly, we come back with a vengeance, add a real public option and the citizens HATE the ins cos. It is how he works. Give them the feeling that they can screw us. Show the people how they REALLY think and operate. Then, crush them.

[jtrockville]

13. Higher premiums are a GIVEN, regardless of whether or not we concede.

How else are they supposed to maintain skyrocketing PROFITS?

[thelordofhell]

14. "Threatening" to raise rates.......why bother?

When was the last time they DIDN'T raise rates? I would call them scumsucking pigs but that's an insult to scumsucking pigs everywhere.

[cabluedem]

22. So what?

Can't afford their rates now. nt

[tomm2thumbs]

15. what is the definition of 'extortion'?

just curious

[tomm2thumbs]

16. what is the definition of 'racketeering'?

again, just wondering aloud

[tomm2thumbs]

17. what is the definition of 'organized crime'?

again, not implying anything here

[tomm2thumbs]

18. what is the definition of 'crime syndicate'?

it seems to be right on the tip of my tongue

[tomm2thumbs]

19. what is the definition of 'conspiracy'?

I just can't seem to put my finger on it

[tomm2thumbs]

20. what is the definition of 'insurance industry'?

now why did that pop into my head - how strange is that?

[Uncle Joe]

26. Kicking and recommending all your questions from posts 15-20.

I believe the big difference between organized crime, and the "health" insurance industry is the former illegally bribes corrupted politicians, judges and police to look the other way as they break the law and the latter legally bribes corrupted politicians and judges to look the other and pass law that breaks the people.

[Festivito]

21. Some desperation. /nt

[greenbird]

23. We were just notified that our rates are going up 39%.

I'm not kidding. Blue Cross/Blue Shield of Western New York. I've already contacted my Congressperson. Husband and I already spend all of our "discretionary" income on health insurance. If we were younger, we'd go without. This can't go on!

[euphoria12leo]

24. When my Doctor schedules

me to have blood drawn I call the phlebotomist blood sucking vampires. Well, my apologies to phlebotomist they are only doing their job. My anger and name calling has been misplaced. Insurance companies are blood suckers. They drain most people out of all they have.




:rant: :mad:

[DonCoquixote]

27. Worst timing ever

When the auto industry asked for a bailout, they kept saying how they would change, suddenly producing the 35+ mpg cars that they kept swearing they could never do for the past 30 years. When you beg Uncle Sam for money, you have to at least pretend you are trying to change your ways, even if you do not mean any of it. No, instead the insurance industry is showing why Single payer would be a good idea.

[midnight]

28. Of course they are.... They are using the goldman sachs book on how

to loot the American consumer and get away with it.....