Aa
Aa
A
A
A
Close
Avatar universal

Health insurance rates up sharply in several states for those who don't get employer coverage

Here we go! If we do not get health care reform, this will spread like wildfire.

By LINDA A. JOHNSON
AP Business Writer


AP Photo/Darron Cummings




Advertisement
  

Buy AP Photo Reprints






Your Questions Answered

AP answers your questions on the news, from earthquake predictions to the commander-in-chief




TRENTON, N.J. (AP) -- Consumers in at least four states who buy their own health insurance are getting hit with premium increases of 15 percent or more - and people in other states could see the same thing.

Anthem Blue Cross, a subsidiary of WellPoint Inc., has been under fire for a week from regulators and politicians for notifying some of its 800,000 individual policyholders in California that it plans to raise rates by up to 39 percent March 1.

The Anthem Blue Cross plan in Maine is asking for increases of about 23 percent this year for some individual policyholders. Last year, they raised rates up to 32 percent.

Kansas had one recent case where one insurer wanting to raise most individual rates 20 percent to 30 percent was persuaded by state insurance officials to reduce the increases to 10 percent to 20 percent. The insurance department would not identify the company but said it was not Anthem.

And in Oregon, multiple insurers were granted rate hikes of 15 percent or more this year after increases of around 25 percent last year for customers who purchase individual health insurance, rather than getting it through their employer.

Premiums are far more volatile for individual policies than for those bought by employers and other large groups, which have bargaining clout and a sizable pool of people among which to spread risk. As more people have lost jobs, many who are healthy have decided to go without health insurance or get a bare-bones, high-deductible policy, reducing the amount of premiums insurers receive.

Steep rate hikes in this sliver of the insurance market - about 13 million Americans, as of 2008 - have popped up sporadically for years. Experts see them becoming increasingly common.

"You're going to see rate increases of 20, 25, 30 percent" for individual health policies in the near term, Sandy Praeger, chairwoman of the health insurance and managed care committee for the National Association of Insurance Commissioners, predicted Friday.

Most states don't have the legal authority to block or reduce health insurance rate increases, Praeger noted.

"When you see stories like (Anthem's), you can almost guarantee there's going to be increased consumer protection activity" in state legislatures, she said.

Her group doesn't track rates state by state, but Praeger said it likely will start doing so, "if we don't get any kind of meaningful reform at the federal level."

Politicians and even some health insurers, including Anthem, are urging a revival of the stalled effort in Congress to overhaul the health care system, arguing everyone needs to be covered by health insurance in order to prevent such premium spikes.

In Maine, where Anthem dominates the market, its proposal has several consumer groups planning big rallies at two public hearings on the rates, on Feb. 22 and 24.

Under Anthem's proposal, a family of four could be charged up to $1,876 per month if the proposed rates are allowed to take effect in July.

"The rate request should be denied on its face. It's outrageous," said Greg Howard, spokesman for Maine Change That Works. "We are in the middle of ... this record-breaking type of recession, and they're doing what they need to guarantee profit margin."

On Friday, Maine House Speaker Hannah Pingree and Senate President Elizabeth Mitchell wrote to two congressmen who have scheduled a Feb. 24 hearing on Anthem's pending rate hikes in California, asking them to also look into the proposed hike in Maine.

"We frankly have been very frustrated by the size of these increases," Pingree told The Associated Press. "Obviously, they are attempting to price certain people out of the market."

Last year, Maine's Superintendent of Insurance Mila Kofman rejected Anthem's initial requests, which would have increased individual rates an average of 18.5 percent. She allowed an average increase of 10.9 percent, with the highest increase at 32.4 percent.

Anthem sued the state. Oral arguments in the case are to be scheduled before the Maine Superior Court for mid-March.

Anthem spokesman Chris Dugan said Friday evening the company wants the court to review Kofman's decision because it didn't allow the company an operating profit. He said the rates requested for 2010 are needed "to make sure that we have adequate resources to cover the remaining members" in the insurance plans.

WellPoint, based in Indianapolis, has said it needs to raise rates so much because the weak economy has resulted in fewer people remaining in the individual market in California, and many who do have serious health problems. It says costs of caring for them have been rising due to higher provider prices and more use of diagnostic tests.

In Oregon, state insurance officials have concluded that rising costs justify the higher individual premiums, particularly because most insurers cut rates too much in 2006 and then got hit with significant losses. So double-digit increases, some 25 percent or higher, have been approved, or reduced a bit from 2007 to 2010.

Insurance Division spokeswoman Cheryl Martinis said the agency has started posting details of all proposed increases on its Webspace site and e-mailing customers want a proposal comes in so they can comment.

"People are extraordinarily upset in Oregon, as they are nationwide, about health care costs," she said.

© 2010 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed. Learn more about our Privacy Policy.

8 Responses
Sort by: Helpful Oldest Newest
Avatar universal
In several states you have to carry auto insurance. It is not an option. I also am for the one payor system. As this article states, this is just the beginning of their antics. I also do not think health insurance should be employer based. I sound like a broken record. I have said the same things so many times.
Helpful - 0
306455 tn?1288862071
Illegal aliens are a whole nother issue. If that problem could be taken care of, we wouldn't even have to consider them as part of the health care situation. I have seen very few politicians that want to do something right about that and the ones that do, I don't care for where they stand on other issues. I have never agreed 100% with any one candidate.
Maybe we could elect a few presidents and meld them into one.

I don't think people should be fined for not having health coverage either. I don't know how they would truly be able to enforce that. But if a person that opts out of the insurance went to the doctor, they would have to pay full price upon service. I don't know why that can't be an option.
I like the idea of a single payer system like Canada has. It works great for them and for the doctors & hospitals etc. No one would have to worry about getting care, no matter what.
Helpful - 0
306455 tn?1288862071
The problem with Insurance company run health care is that is a for profit system and when a "for profit" system is deciding peoples health issues, there will always be rationing, canceling and refusals of coverage.  If the Government steps in and sets laws telling them they can't refuse or cancel people, the insurance companies will make up for their lose of profit by raising premiums. If government caps their premium level.....well, they'll buy some government officials and have the law changed.
Helpful - 0
649848 tn?1534633700
I don't think "media mania" has won anything.  If the truth be known, there seems to be very few people who don't think that some form of health care reform is necessary.  It's just that they don't necessarily think the government should be running it any more than the insurance companies should.  Nor do they think any plan should be "shoved down our throats", without even giving the public the chance to see exactly what's in the bill.  Yes, I know that the supposed bill has been on the internet, but I've also heard that changes will be made and some issues not resolved until AFTER the bill is passed; then it will be too late.

In my opinion, if health care costs were brought in line, the hype over insurance wouldn't be so great and the insurance companies would not wield so much power.  As I've said before -- how can a physical exam that takes < 10 minutes and consists of the doctor doing nothing more than looking down my throat, in my ears, feeling my thyroid and tapping my knees to check for reflexes possibly be worth $295, which is what's billed to my insurance??

I for one, believe that there does need to be something done, especially for those who can't get insurance because of pre-existing conditions or afford to pay their medical expenses themselves; or if by some stroke of luck, they DO manage to get someone to take them on, they are charged through the nose for it - that's price gouging and discrimination, which are both illegal.  

I don't think that people should be forced to get insurance either.  We are currently paying for medical care for thousands (maybe millions) of illegal aliens - why should they be allowed to sign up as soon as they enter the country, but our own citizens can't qualify?  

How much sense does it make to fine people if they don't get insurance?  If someone can't afford the cost of the insurance, how can they afford to pay a fine for not having it? And, if the government has to subsidize health insurance, how expensive is it really going to be?? I've heard/read figures ranging anywhere from $2000 - $6000/month/family -- how many of us can afford that or even anything close? IF that's the case (and hopefully, it isn't true), then why not just "freeze" current rates and have the government buy our insurance now AND require insurance companies to sell to everyone, not just the healthy ones?

There has been a lot of "fear mongering" on both sides and I think it's time to stop it and work out a plan that's good for EVERYONE.  Bottom line -- when congress & the administration comes up with a plan that is good enough for THEM and their families to use, instead of having their own separate insurance, it will be good enough for ME and my family.  
Helpful - 0
Avatar universal
Socialism and death panels, killing gramma. Big government control, fall of america. I could go on. Fear of change. Media mania paid for by the insurance industries has won.  In other words people have opted to allow the insurance companies to govern their lives. Literally.
Helpful - 0
377493 tn?1356502149
I remain confused on the opposition to the Public Option.  The only real argument I have heard against it is that the Gov't will then control your Health Care and what tests, etc. your Dr. can order.  I suppose that is true, but isn't that what these Insurance Companies are doing now?  This is one of those issues I have followed as closely as I am able, and I really don't understand.  
Helpful - 0
Avatar universal
This hits the group of people that get it on their own, it is not employer based so they pay more to begin with. Self employed mostly. People need to wake up and take a look at their policies that they do have and check out the limits. That will be an eye opener right there. The insurance companies are on the move and they are out to yield their power on us. I sure wish they would consider the public option. I think they shouldve educated people on how the insurance industry works before they dropped the idea.
Helpful - 0
306455 tn?1288862071
I have very little sympathy for those policy holders. They were warned. Soon they'll all be crying, "Why don't we have a public option?".
Tisk, tisk.
Helpful - 0
You must join this user group in order to participate in this discussion.

You are reading content posted in the Current Events . . . Group

Didn't find the answer you were looking for?
Ask a question
Popular Resources
A list of national and international resources and hotlines to help connect you to needed health and medical services.
Herpes sores blister, then burst, scab and heal.
Herpes spreads by oral, vaginal and anal sex.
STIs are the most common cause of genital sores.
Condoms are the most effective way to prevent HIV and STDs.
PrEP is used by people with high risk to prevent HIV infection.