Wellpoint (BCBS) To Raise Rates in 11 States

By Jeralyn, Section Economy
Posted on Wed Feb 24, 2010 at 01:27:43 PM EST
Tags: health insurance, BCBS (all tags)

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It's not just California. Think Progress reports Wellpoint (Blue Cross Blue Shield) is going to impose double-digit rate increases in 11 of the 14 states it does business. In addiition to California, the states are: Colorado, Connecticut, Georgia, Indiana, Maine, Nevada, New Hampshire, New York, Virginia, and Wisconsin.”

The findings are based on a new survey by the Center for American Progress Action Fund. Here's a sample:

Colorado: Average rates are expected to increase 19.9 percent in 2010, with increases of up to 24.5 percent for some policyholders.

Indiana: Rates are expected to increase 21 percent in 2010.

[More...]

Maine: Anthem Blue Cross and Blue Shield requested a 23 percent increase for 2010 after five straight years of double-digit increases for individual policyholders.

Nevada: WellPoint requested a 17.6 percent premium rate increase for individual plans in 2010, and the state approved an overall rate increase of 12.8 percent.

Small employers in New York, watch out:

There are also signs that WellPoint has substantially increased rates on “small group” policies, which cover small businesses with up to 50 employees. Data wasn’t immediately available in many states, but in New York WellPoint is increasing premiums on small group policies by up to 28.6 percent this year.

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Wellpoint (BCBS) To Raise Rates in 11 States | 33 comments (33 topical)

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An important stat to consider with these increases (5.00 / 1) (#1)
by magster on Wed Feb 24, 2010 at 01:45:05 PM EST

is that Wellpoint's profits increased eightfold in just the last quarter to $2.7 billion.

I'm sure Mr. Bayh is very pleased (none / 0) (#8)
by shoephone on Wed Feb 24, 2010 at 02:14:17 PM EST

seeing as how his wife sits on the board of Wellpoint.


: Leave Mrs. Bayh aloooone (none / 0) (#10)
by ruffian on Wed Feb 24, 2010 at 02:16:55 PM EST

It is meanies like you that are driving a shining light out of the Senate. /snark

denominator? (none / 0) (#32)
by diogenes on Wed Feb 24, 2010 at 06:54:29 PM EST

The total revenues of wellpoint are about sixty billion; even if they made NO profit based on the fourth quarter rate there would only be a one-off rate decrease of 16%
Profits were 334 million the year before in the fourth quarter and mostly run about 4-5 billion a year, not ten billion a year.
Lots of insurers are not for profit. What sort of rabble do you raise about them?
The private market seems to work fine for car insurance, life insurance, etc. Maybe it's messed up for health insurance because of the way health insurance is different--because people get it tax free at work and because it is not portable. You can't buy the cheaper insurance advertised by the gekko if you get insurance through the job.

: Differences (none / 0) (#33)
by ruffian on Wed Feb 24, 2010 at 10:17:53 PM EST

Also the market is not the same for health insurance because the benefits are used regularly, as opposed to life insurance (used once) and car insurance (possibly never used). And of course car insurance is mandated in just about every state, keeping the pool large.

I've heard two different reasons/excuses given (5.00 / 1) (#2)
by ruffian on Wed Feb 24, 2010 at 01:53:04 PM EST

Both on NPR. 1, this morning, the reason I believe: So many people have dropped their coverage that they are raising premiums on the remaining people to make up the difference. 2, this afternoon, the one I don't believe: rising health care costs. I simply don't believe that provider fees have gone up 20%, let alone 39%.

How many more people are going to drop the coverage because of these increases? Will they then increase them even more to keep up? So much for the free market - did it occur to them to lower the premiums to attract back the customers they lost?

I don't think there is a better example of why this system is broken and unsustainable. Single payer is really the only way to fix it.

The people who are dropping... (none / 0) (#4)
by kdog on Wed Feb 24, 2010 at 02:02:56 PM EST

coverage are the smart ones...since we're stuck in this game we should at least improve our strategies...play "make the sucker pay" like the titans of industry for awhile and see what happens...bring this situation to a head.

Like say what would happen if everybody cancelled their insurance coverage at the same time? How long before the ins. co's are calling back with 50% cheaper rates...20 minutes?


Hey, that was my idea last summer (none / 0) (#5)
by ruffian on Wed Feb 24, 2010 at 02:06:00 PM EST

Everyone just drop it at the same time. Only way to see what the real market price of both insurance and health care is.


That's a nice thought (none / 0) (#6)
by jbindc on Wed Feb 24, 2010 at 02:06:01 PM EST

But a risky one - what if you drop your insurance and then you get in a car accident? Or fall down? Or get a disease? Those will end up costing you tons more money.

It's just too big a gamble to stand on principle, unfortunately, and that's why they have us over a barrel.


yeah, I know (none / 0) (#7)
by ruffian on Wed Feb 24, 2010 at 02:08:18 PM EST

it only works if everyone does it, and provokes a crisis that gets resolved to the better before I get hit by a bus. Not really a practical plan.


True... (none / 0) (#12)
by kdog on Wed Feb 24, 2010 at 02:23:41 PM EST

but as the sayings go..."nothing ventured nothing gained", "better to die on your feet than live on your knees"...and my favorite, "life is a gamble".

Besides, millions of us live that gamble everyday.


And that's why we need (none / 0) (#13)
by jbindc on Wed Feb 24, 2010 at 02:24:57 PM EST

single payer. No one should have to take that gamble.


We ain't getting single-payer... (none / 0) (#14)
by kdog on Wed Feb 24, 2010 at 02:29:41 PM EST

so what else can we do except a) pay the ridiculous vig or b) gamble on a fight.


I can't afford to gamble (none / 0) (#15)
by jbindc on Wed Feb 24, 2010 at 02:35:08 PM EST

I don't have the strength or courage to live in a box if I get sick and can't afford to pay the rest of my bills.


: That sums up... (none / 0) (#20)
%%n