Blue Cross Blue Shield of Michigan (Detroit) wants to raise rates an average of 56% for individual health plans, 42% for group conversion plans, and 31% for Medicare Supplemental plans. Michigan Attorney General Mike Cox is freaking out.
Independence Blue Cross (Philadelphia) wants to raise rates 18% to 29% on average in three of its money-losing individual health plans. Philadelphia consumer advocate Lance Haver is freaking out.
I can give you the facts about the increases. I can quote a BCBS-MI spokeswoman on the rationale for the hikes (projected individual health plan losses of hundreds of millions of dollars) or refer you to financial filings from Independence showing how its individual plans are losing big money.
On the other hand, I can point you to arguments from both Haver and Cox about why the increases aren’t justified. Choose sides as you may.
What’s interesting to me is that individual health insurance is poised to play a big role in any healthcare reform package that makes its way to President Obama’s desk. One way or another, it looks like millions more people will have this type of coverage.
Yes, there will be regulations and safeguards and subsidies. But without the type of cost controls that nobody seems ready to agree upon (i.e., without health plans, providers, drug makers and others sharing some real bottom-line pain), I’m guessing there will be many more of these ugly battles to come.
Wherefore art thou public plan?
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