Health Insurance Companies Raise Premiums by 181.4% Since Health Care Reform Passage

We are barely 7 months into 2012 and already health insurers are dramatically hiking premium rates. Specifically, they are raising premiums in order to get as much profit as possible. The insurers themselves refuse to justify their rate hikes publicly because they claim they would be giving away “trade secrets” (Source 1).  As you will see in the data below, the country’s largest  insurers have raised premiums by 181.4% (16.5% average) since health care reform officially passed in 2010. Approximately 787,000 policy holders were effected. The insurers were fined a whopping total of $116,750,000 as a result of their deed. The Affordable Care Act (ACA) is supposed to curb this unethical act but the consumer will not see significant relief from this until 2014.                                                            R74BG8W84C8B

——————————————————————————————————————————————-

Rate Hikes By Insurer

——————————–

Aetna

8% increase   – April 2012 (Source 3)

————————————————–

Blue Cross Blue Shield
20% Increase  – July 2012

7% increase   –  May 2012 (Source 2)

9.35%  increase  – January 2012 (Source 5)

12.9% increase   – September 2011 (Source 6)

22% increase     – May 2011 (Source 8)

59% increase     – January 2011 (Source 9)

12.4% increase small group  – May 2010 (Source 10)

13.4% increase large group – May 2010 (Source 10)

———————————————————————–

Kaiser Permamente

10% increase – June 2011 (Source 7)

———————————————————

United Healthcare

11.8% increase on businesses of fewer than 50 employees  – May 2010 (Source 10)

15.5% increase on business of greater than 50 employees  – May 2010 (Source 10)

—————————————————————————————————————–

Members Effected by Rate Increase
————————————————
Aetna
73,000 members   – April 2012  (Source 3)

———————————————————

Blue Cross Blue Shield
90,000  – July 2012

31,000   – April 2012     (Source 2)

86,000    – January 2012 (Source 5)

45,000   –  September 2011 (Source 6)

59,000   – May 2011  (Source 8)

193,000  – January 2011 (Source 9)

—————————————————

Kaiser

300,000   – June 2011  (Source 7)

————————————————–

Impact on Profit

———————–

Aetna

Profit UP 27.7% due to 8% premium increase  (Source 4)

————————————————————————

Fines for Rate Increases

———————————–

Assurant fined $2,750,000 for unapproved rate increase  – May 2012 (Source 11)

11 insurers (United Healthcare, Aetna, Blue Cross Blue Shield) fined $114,000,000  -January 2012 (Source 12)

——————————————————————————————————————————————-

Sources:

——————————————-

1. http://www.nytimes.com/2011/10/12/nyregion/health-insurers-ask-to-keep-rate-increase-data-secret.html?_r=1&scp=1&sq=health%20insurers%20ask%20to%20keep%20rate%20increase%20data%20secret&st=cse

2. http://www.elpasotimes.com/ci_20733206/blue-cross-raising-rates-31-000?source=most_emailed

3. http://articles.latimes.com/2012/apr/05/business/la-fi-mo-aetna-raises-rates-20120405

4. http://www.fiercehealthpayer.com/story/aetna-ignores-regulator-implement-8-rate-hike/2012-04-09

5. http://www.kcrg.com/news/local/State-Approves-Wellmarks-Health-Insurance-Premium-Hike-136611573.html

6. http://www.ctmirror.org/story/13806/anthem-proposes-129-percent-rate-increase

7. http://www.sfgate.com/business/article/Kaiser-raising-rates-for-300-000-subscribers-2366454.php

8. http://www.oregonlive.com/health/index.ssf/2011/05/oregons_largest_health_insurer.html

9. http://latimesblogs.latimes.com/money_co/2011/01/rate-increase-by-blue-shield-of-california-prompts-criticism.html

10. http://www.fiercehealthpayer.com/story/insurance-premiums-more-double-digit-hikes-sought-ri-mi-and-ct/2010-05-24

11. http://www.in.gov/idoi/files/Assurant_Press_Release_5-16-2012%281%29.pdf

12. http://www.governor.ny.gov/press/110911health

————————————————————————————–

Keywords: health care insurance, insurance premium, blue cross blue shield, health insurance company, united healthcare, health care reform

Related articles

• Affordable Care Act delivering benefits to consumers (blogforarizona.com)