New way to cut costs, threats.

[Quantum Windbag]

On Monday, insurers that sell Medicare Advantage plans must submit their 2011 bids to the government. In a letter to four insurance-industry executives, Health and Human Services Secretary Kathleen Sebelius warned the companies not to increase premiums and co-payments for seniors. "Focus on price and quality rather than asking seniors who need health care the most to pay more for it," Ms. Sebelius wrote in a letter sent Friday and reviewed by The Wall Street Journal. The letters went to WellPoint Inc., Cigna Corp., BlueCross BlueShield Association and Health Care Service Corp., according to a person familiar with the situation. Those executives met with Ms. Sebelius last month.
Many insurance companies are planning to increase costs for a range of services for seniors next year, according to consultants who have helped prepare their bids. Dozens of Medicare Advantage providers plan to cut back vision, dental and prescription benefits. Some plans are eliminating free teeth cleanings and gym memberships, and raising fees for hearing aides, eye glasses and emergency-room visits.
Consultants cite two reasons for the cuts. The rate the government will pay private insurers to run the plans is frozen for 2011 at 2010 levels, while medical costs are expected to increase an average of at least 6%. Such price increases and benefit cuts will help them recoup that difference, the consultants say.
Meanwhile, the health overhaul will impose drastic payment cuts to insurers that run the plans, and consultants say insurance companies need to begin adapting now. Starting in 2012, the law calls for a gradual reduction in government payments to insurers, totaling $136 billion before the end of the decade.
The Obama administration and Senate Democrats say that passing those costs on as early as next year is unfair. In her letter, Ms. Sebelius warned insurers that she will deny insurers bids if they include excessive price increases, using new powers under the health law.

The Obama Administration's Genius New Plan For Keeping Health Insurance Premiums Down - Hit & Run : Reason Magazine

 

[Baruch Menachem]

She turns them down, that is her option.

And folks won't get coverage.

And there will be a new crisis for 0bama to mismanage. As far as the 0bama people are concerned, this is win win

 

[Care4all]

my attorney general threatened the insurance company of Anthem blue cross blue shield not to raise their rates and when they did raise them 20%....(mind you, before Anthem raised their rates the 20%, a health care policy for me and matt was $25000 A YEAR with nearly a $5,ooo deductible added to that...) the attorney general here cut that increase to a 10% increase, now Anthem is suing our state....

 

[syrenn]

Its crazy, just crazy.

 

[Quantum Windbag]

my attorney general threatened the insurance company of Anthem blue cross blue shield not to raise their rates and when they did raise them 20%....(mind you, before Anthem raised their rates the 20%, a health care policy for me and matt was $25000 A YEAR with nearly a $5,ooo deductible added to that...) the attorney general here cut that increase to a 10% increase, now Anthem is suing our state....

Perhaps they are suing because they are being forced to accept restrictions on what they can charge for costs the government is imposing on them. Wouldn't you sue if you were told you had to charge less for what you are doing, and work harder at the same time?

 

[Care4all]

my attorney general threatened the insurance company of Anthem blue cross blue shield not to raise their rates and when they did raise them 20%....(mind you, before Anthem raised their rates the 20%, a health care policy for me and matt was $25000 A YEAR with nearly a $5,ooo deductible added to that...) the attorney general here cut that increase to a 10% increase, now Anthem is suing our state....

Perhaps they are suing because they are being forced to accept restrictions on what they can charge for costs the government is imposing on them. Wouldn't you sue if you were told you had to charge less for what you are doing, and work harder at the same time?

do you think charging matt and me, 2 healthy folks, taking no prescriptions, should have to pay $30k a year for health insurance? $25k a year, is already unmanageable.....i don't care what the ifs, ands, or buts are... in the argument.

maybe the insurance companies need to look elsewhere for their profit...like cutting their own overhead, or cutting their own multi million dollar salaries to their ceos and vp's, or maybe putting the squeeze on the cost of the hospitals or doctors for what they charge....there needs to be some market forces that work for goodness sakes instead of just ''charging us more''.....

 

[syrenn]

my attorney general threatened the insurance company of Anthem blue cross blue shield not to raise their rates and when they did raise them 20%....(mind you, before Anthem raised their rates the 20%, a health care policy for me and matt was $25000 A YEAR with nearly a $5,ooo deductible added to that...) the attorney general here cut that increase to a 10% increase, now Anthem is suing our state....

Perhaps they are suing because they are being forced to accept restrictions on what they can charge for costs the government is imposing on them. Wouldn't you sue if you were told you had to charge less for what you are doing, and work harder at the same time?

do you think charging matt and me, 2 healthy folks, taking no prescriptions, should have to pay $30k a year for health insurance? $25k a year, is already unmanageable.....i don't care what the ifs, ands, or buts are... in the argument.

maybe the insurance companies need to look elsewhere for their profit...like cutting their own overhead, or cutting their own multi million dollar salaries to their ceos and vp's, or maybe putting the squeeze on the cost of the hospitals or doctors for what they charge....there needs to be some market forces that work for goodness sakes instead of just ''charging us more''.....

I am with you there, they charge me a fortune!

However one of your arguments about squeezing hospitals is one of my pet peeves. Hospitals are taking tabs of the uninsured and illegals and I/we am picking up the balance.

 

[Quantum Windbag]

do you think charging matt and me, 2 healthy folks, taking no prescriptions, should have to pay $30k a year for health insurance? $25k a year, is already unmanageable.....i don't care what the ifs, ands, or buts are... in the argument.

maybe the insurance companies need to look elsewhere for their profit...like cutting their own overhead, or cutting their own multi million dollar salaries to their ceos and vp's, or maybe putting the squeeze on the cost of the hospitals or doctors for what they charge....there needs to be some market forces that work for goodness sakes instead of just ''charging us more''.....

Then do not but it. Why is this a complex issue, if you think the product benefits are less than the cost than it is foolish to continue to purchase insurance.

The problem is that insurance pays for medical costs without you being a part of it. I once got a bill for an MRI and forwarded it to my insurance company, and they paid it without a qualm. The only real problem was that I had shopped around a bit, and found a place that charged me $450, and the insurance simply paid them the standard fee, $900. How does that make any sense?

Insurance needs to be structured to get people involved in the cost of their health care, nothing will drive down costs quicker than market pressure.

 

[Queecho Feecho]

do you think charging matt and me, 2 healthy folks, taking no prescriptions, should have to pay $30k a year for health insurance? $25k a year, is already unmanageable.....i don't care what the ifs, ands, or buts are... in the argument.

maybe the insurance companies need to look elsewhere for their profit...like cutting their own overhead, or cutting their own multi million dollar salaries to their ceos and vp's, or maybe putting the squeeze on the cost of the hospitals or doctors for what they charge....there needs to be some market forces that work for goodness sakes instead of just ''charging us more''.....

If you don't think the insurance is worth it, then don't buy it.

If a restaurant charged $100 for a spaghetti dinner, would you buy that?