What's behind Anthem's huge premium increase? Not Obamacare.

[unhappycamper]

http://www.latimes.com/business/hiltzik/la-fi-mh-anthems-huge-premium-increase-20140131,0,5354357.story



Indianapolis-based Wellpoint's Anthem Blue Cross unit is hitting thousands of California customers with a big premium increase.

What's behind Anthem's huge premium increase? Not Obamacare.
By Michael Hiltzik
January 31, 2014, 3:15 p.m.

Insurance companies, bless their hearts, seem determined to remind us why we need the Affordable Care Act. The latest example comes from Anthem Blue Cross, which has just hit 306,000 customers in California with premium increases of up to 25%.

As reported by my colleague Chad Terhune, the increases average 16% and are scheduled to kick in April 1, unless the state Department of Insurance jawbones Anthem into backing down.

Here's the kicker: No one can blame these increases on the mandates of the Affordable Care Act, a popular argument among critics of the act. That's because the increases are for grandfathered policies exempt from the act.

"It's a rich irony," says Anthony Wright, executive director of Health Access, a leading California consumer advocacy group. "The insurers can't have it both ways -- they can't blame the increases on the ACA while increasing rates on their non-ACA-compliant plans as well."

[SamKnause]

1. Just imagine,

if we had an honest functioning government, we could address this issue.

Alas, we do not.

That is why many issues are not being addressed, and the ones that are, are being handled with half ass solutions that always favor the people we have come to know and love, the corporations.

I am so happy my fellow citizens, the corporations are doing so well.

When will the issues of the living and breathing be addressed ????

[Doctor_J]

2. They are!!! We just have to factor in trillion dollar profits

Once those are taken care of, let the healing begin!!!!

[BrotherIvan]

3. They have been increasing premiums for the last four years

I can't wait to see them put out of business by California single payer. I keep hoping/praying for it to happen in my lifetime. It would be such a game changer.

[golfguru]

4. 25% increase covers the policy holders who

can no longer be thrown out, their policies cancelled. The insurance companies can not charge those with pre-conditions whatever they choose. Therefore, to keep them profitable, the companies need to increase premiums across the board.

[Doctor_J]

5. so you're saying it IS ACA

I think

[golfguru]

6. Indirectly........................

Note that ACA requires minimum percentage spent on actual delivery of medical service of the total premiums collected by insurance companies. But ACA has no limit on how high the insurers can increase premiums in any one year.

ACA prohibits cancellations and refusal of policies for any reason, including any health pre-conditions. Previously insurers would routinely cancel you if they thought you were a bad risk. It then follows that their costs are now higher. Someone has to pay those higher costs of providing health services. And that would be all policy holders or tax payers via subsidies.

[DemReadingDU]

7. Can the insured be cancelled if the bill is not paid? n/t

[golfguru]

8. I would venture an educated guess...

The answer is yes. ACA is based on every one contributing to health care who earns enough income. That is why there is a mandate to buy insurance.
So, if you have enough income, and you do not pay the premiums,
your insurance will have expired.