Effects of Health Care Reform on Health Insurance Rates

February 14, 2010
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A World Without Healthcare Reform: Rising Health Insurance Rates?

Obviously, there are quite a number of Americans who do not accept health care reform and that’s because it mainly increases the rates of the health plans and the tax as well. Just recently, Anthem Blue Cross health insurance proposed a health insurance rate increase of up to 39%, beginning March 1st. With this proposition, around 800,000 customers might be affected.

This news obviously outraged the many. Health and Human Services Secretary Kathleen Sebelius is now demanding for a detailed explanation for the rise in medical insurance premiums while the state’s insurance regulator, Steven Poizner, requested an inquiry from his department. Sebelius also wants Anthem Blue Cross and its parent company WellPoint to publicly divulge its medical loss ratio (MLR). The MLR reveals what percentage of health insurance premiums is spent on fulfilling claims and providing health care, versus how much is spent on administrative costs including executive salaries.

Even with all these disputes, the spokesperson of Anthem did not confirm or deny whether Sebelius’ letter was received. But what do they care? Most insurance companies are used to all the criticisms they receive, aren’t they?

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