Dave DeWitte, CR Gazette –
The state has approved Wellmark Blue Cross Blue Shield’s request for a 9.35 percent increase in individual health insurance premiums.
The decision will mean rate increases of up to $45 per month for 70,000 individual Wellmark policyholders under the age of 66. They are a relatively smart part of Wellmark’s overall business, which is more heavily concentrated in group health insurance.
In a decision issued last week, the Iowa Insurance indicated that both an independent actuary, the Magnum Actuarial Group, and the Iowa Insurance Division Staff condluded the Wellmark rate hike is reasonable and justified under state and federal guidelines.
The report said overall medical costs reported by health insurance carriers in the state rose $68.8 million in 2010.
In 2010, it said the sales commissions for Wellmark Inc., the division of Wellmark that provides individual health insurance, were 4 percent. The administrative expenses for Wellmark Inc. were 9 percent.
Medical losses accounted for 86 percent of paid-in premiums of Wellmark Inc. in 2010, the decision said.
Wellmark’s application to boost premiums 9.35 percent prompted an outpouring of over 300 public comments, primarily from policyholders concerned about the affordability of their insurance.
Insurance Commissioner Susan Voss’ reaction to the comments was noted in the decision.
“This is not a decision she takes lightly,” the order said. “Thousands of Iowans will be impacted by this decision — many in a negative fashion.”
While noting the importance of a healthy population to a thriving state economy, the order said the balancing of the needs of Iowa consumers and the solvency of an insurance carrier must be weighed carefully.”
The decision also provided a briefing on the potential future impacts of the health reform law.
“Depending on how policyholders are pooled for rating purposes, some consumers could see large rate increases while others may see some rate decreases,” the order said.
OBSERVER…. right on ! Average Joe Blow does not understand the expense of running a health care office/hospital. Don’t forget that IOWA is on the bottom of the MEDICARE reimbursement totem poll – that means (Joe Blow) Iowa health care providers/hospitals receive the lowest payment in the entire nation for patient care. Puerto Rico receives higher rates of reimbursements for God’s sake! What is wrong with this picture? Government at it’s uglies unfair self and refuse to change this unfair practice – why don’t good old Harkin & Grassley fight for equal distribution of Medicare funds for patients? Worthless politicians if you ask me!
Essentially I favor a system that eliminates insurance companies entirely. Medical costs need to be driven down to a procedure by procedure rate. The insurance scam is no longer viable. We must return to the way it was in the 1800’a, and everyone personally pays for the procedures they need. Competition would return to the doctors, the costs intensely lowered, and in the case of catastrophic illness, special funds set up by private charities or medical cooperatives, which citizens can pay into privately, away from established insurance companies. It may not be perfect, but the way it is now has to change.
Everything keeps going up except our wages. Those of us that have to survive on a pension get a little increase and the insurance companies take it. There is no winning. Of course, we struggle to pay for insurance and they keeps jacking up the prices so we can pay for people that can’t afford insurance. They need to crack down on the pharmaceutical companies and the ridiculous prices these doctors and hospitals charge. Over $100 for an office call to see a doctor for 5 minutes tops. Really?????? The medical profession is now big business, not just caring about helping people.
It’s sad that insurance prices have to go up. But look at the real reasons why. What is your Doctor’s current office visit charge? Did his expenses go up? Absolutely they did. Insurance, equipment, pay of office staff, you name it. Their costs go up, so they pass it on to the patient.
Same goes with insurance companies. They exist to sell a product. A product which, you can either take, or go to a competitor. Not a hard concept.
Do you think the local insurance agents work for free? No, they make a living selling policies. And last I looked, selling insurance is perfectly legal in the U.S. and Iowa.
Medicine is not getting cheaper. We have different ways to treat disease than years ago. New drugs, new tests, new equipment, and gadgets (the machine that goes ‘Ping’). They all cost money.
There are ways to contain costs, and that is what we must do. First, Tort reform, to lift the large burden (read expense) a health care provider must carry. Currently, a provider in order to make a proper diagnosis, will order tests. Not only is it prudent, but it does two other things. It increases costs, and helps insulate the provider from potential liability.
Liability. Did you know that insurance can cost between $30,000 to $130,000 a year to some providers? Where do you think the money comes from to cover that?
Next, we must force everyone who visits a doctor, or receives a service, to pay the same charge. That means, Medicare/Medicaid must pay exactly the same as a cash customer. Once you find everyone paying the same thing, the charges for service should go down.
As much as I despise price fixing, in this case, everyone wins. The provider gets full payment from everyone and lowers his cost of liability.
The Patient wins with lower cost of service.
No doubt this is a major concern of everyone, but let’s not focus on supposed demons, but on the real source of the issue.
Insurance companies are criminals. We need to bring down the cost of healthcare and eliminate those middlemen once and for all.