Blue Shield of California Premium Increases

[jbage007]

This is a great story because it underlines exactly what happens when too many younger people voluntarily OPT OUT of health insurance. Participation rates have fallen off the cliff in CA due to the economy as much as anything, which has had a draconian impact on rates, in addition to the new mandates.

Blue Shield cannot opt to just stop doing business IN California. If they did, they would just be out of business, period. It's a one-state company!

And by the way, their underwriting has always been on the tight side. Just think what the problem would be like if they had loose underwriting.

 

[DS4]

Ind health companies have a tough balancing act. If they raise premium rates too much, the young and healthly just drop out.
The clients with "Preferred" premium rates that went through underwriting many years ago, that now have serious health issues, continue to pay their premiums.
This leaves the unhealthly left to only drives premium increases at a greater pace.
I have been selling health insurance in California since 1978. Back then, if you wanted health coverage, there were 30 to 40 companies offering coverage. Over the years, most all of those companies have thrown the towel in on the California marketplace. Oh, by the way, these companies didn't leave California because they made too much money.
Today, I can now count on one hand the number of companies selling Ind health insurance in Ca.
Over the next few years, you will see this number shrink until you can count the number of carriers left on a finger or two.

 

[AndreaSti]

Ind health companies have a tough balancing act. If they raise premium rates too much, the young and healthly just drop out.
The clients with "Preferred" premium rates that went through underwriting many years ago, that now have serious health issues, continue to pay their premiums.
This leaves the unhealthly left to only drives premium increases at a greater pace.
I have been selling health insurance in California since 1978. Back then, if you wanted health coverage, there were 30 to 40 companies offering coverage. Over the years, most all of those companies have thrown the towel in on the California marketplace. Oh, by the way, these companies didn't leave California because they made too much money.
Today, I can now count on one hand the number of companies selling Ind health insurance in Ca.
Over the next few years, you will see this number shrink until you can count the number of carriers left on a finger or two.

I foresee less companies here in GA in the near future as well, and we are considered a "red" state. Can't imagine the environment in California.

 

[GreenSky]

Over the next few years, you will see this number shrink until you can count the number of carriers left on a finger or two.

And I think we all know which finger the government is giving to not only the insurance carriers, but citizens as well.

Rick

 

[VolAgent]

And I think we all know which finger the government is giving to not only the insurance carriers, but citizens as well.

Rick

But the liberals all say it is to benefit us? Surely more competition and lower premiums is soon to come?

 

[GreenSky]

But the liberals all say it is to benefit us? Surely more competition and lower premiums is soon to come?

If Obama, Reid and Pelosi say so, it must be so.

Rck

 

[AllenChicago]

This Story From CNN Money Blue Shield of California proposes 59% premium rate hike - Jan. 7, 2011 states that Blue Shield is going to increase California rates a huge amount on March 1st.

The article says that Blue Shield of California has 193,000 customers. With a 10% market-share, 193,000 seems waaay low, doesn't it?

Also, many of the consumer advocates and most Democratic politicians are saying that Blue Shield is trying line its pockets. Don't these morons believe in the very laws that they devised/implemented to limit the amount of money insurance companies can keep after medical expenses are paid!?!
-AC

 

[GreenSky]

The article says that Blue Shield of California has 193,000 customers. With a 10% market-share, 193,000 seems waaay low, doesn't it?

Also, many of the consumer advocates and most Democratic politicians are saying that Blue Shield is trying line its pockets. Don't these morons believe in the very laws that they devised/implemented to limit the amount of money insurance companies can keep after medical expenses are paid!?!
-AC

From what I understand, IFP is only about 7% of the market in CA so 1.93 million sounds reasonable.

But in regards to the question you posed; is that a trick question?

Rick

 

[AllenChicago]

From what I understand, IFP is only about 7% of the market in CA so 1.93 million sounds reasonable.

But in regards to the question you posed; is that a trick question?

Rick

Rick, the article said 193,000. Not 1.93 million. But nevertheless, I love hearing the responses from "experts" and pols who don't understand how premiums could possibly do a double-digit increase with MLR in effect. When insurance companies try to explain why, these bozos put their hands over their ears.
-AC

 

[GreenSky]

Rick, the article said 193,000. Not 1.93 million. But nevertheless, I love hearing the responses from "experts" and pols who don't understand how premiums could possibly do a double-digit increase with MLR in effect. When insurance companies try to explain why, these bozos put their hands over their ears.
-AC

If they have 193,000 which is 10% share, wouldn't the total policyholders be 1.93 million?

Rick