Robert Reich: The National Anthem -- And Why We Need Health Care Reform So Desperately

[kpete]

The National Anthem -- And Why We Need Health Care Reform So Desperately
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By Robert Reich - February 10, 2010, 11:37AM

My health insurer here in California is Anthem Blue Cross. When I first opted for it, it was just called Blue Cross. Then, a year or so back, I was notified that an entity called "Anthem" would now be running my insurance policy. I didn't think much about it at the time. I've had the usual problems most people have with their health insurers - confusing bills, co-payments and deductibles that never seem to add up, a bureaucracy that gives every impression of being more interested in fighting me than helping me -- but nothing more.

Now, Anthem Blue Cross is going a step further. It's raising rates for individual policyholders by as much as 39 percent. That's fifteen times faster than inflation. So far, my group policy hasn't been affected but I'm expecting the worst.

Anthem says it has no choice. It says the recession has forced many policyholders to drop coverage because they can't afford it. So Anthem has to spread its costs over a much smaller pool, which ratchets up the cost of each. In addition, says Anthem, too many of those remaining policyholders have greater medical needs than the average. So Anthem is just doing what it has to do to survive.

This argument sounds logical until you look more closely. First, Anthem and its corporate parent, WellPoint, are enormously profitable. WellPoint's profits rose to $2.7 billion last quarter. Even if you subtract one-time-only financial maneuvers, WellPoint is still fat and happy, which makes Anthem fat and happy. Everyone is fat and happy except Anthem's policy holders, who are being skewered.

more:
http://tpmcafe.talkingpointsmemo.com/2010/02/10/the_national_anthem_--_and_why_we_need_health_care/

[global1]

1. K&R This - Everyone Should Read.....

why or who would want to un-recommend this post?

[Cassandra]

2. Not just being skewered.

The whole economy has far too much money going to unproductive activities (over-priced insurance and banking/gambling) which leaves too little money to actually MAKE things (including food).

[Echo In Light]

3. K&R