MarketWatch: Premiums Gone Wild

[marmar]

Feb. 18, 2010, 8:57 p.m. EST ·

States grapple with health-insurer rate hikes
Some get more aggressive about reining in excess

By Kristen Gerencher, MarketWatch


SAN FRANCISCO (MarketWatch) -- As health-insurance premiums rise beyond what many people can pay, some states are experimenting with more aggressive ways to protect consumers from skyrocketing premiums in the individual market.

Anthem Blue Cross of California touched off a firestorm this month when the company notified customers with individual policies that their premiums were set to increase as much as 39%. The proposed rate hikes are the subject of upcoming hearings at both the state and federal level.

"Unfortunately, we've seen these kind of price hikes before," said Anthony Wright, executive director of Health Access, a consumer group in Sacramento. "The individual market is the least efficient, most expensive way to get coverage, and one of the problems is individuals have no market power and are at the mercy of big insurers.

"The reason this has gotten so much attention is exactly because we are right now figuring out what the new rules for insurers should be, and this is an example of why the old rules aren't working," he said of Anthem's move. .........(more)

The complete piece is at: http://www.marketwatch.com/story/states-grapple-with-insurers-rate-hikes-2010-02-18