Anthem Blue Cross of California - 30% rate increase

[mfrumkin]

Met with the local BX rep, who basically confirmed what Dave020 says. The rep said that the the Lumenos was a product previously offered only to large groups (trying to remember if he said group size was 500+) and their utiliization was relatively low. When Lumenos was introduced to California (thought he said April 2007), it was offered to small groups, but their pricing was similar to large groups. The small groups in California immediately realized how great this benefit-rich plan was and utilized the heck out of it. The rep said the physicals and blood tests and mammograms etc. ran up the costs, yet those costs were covered by BX, not the client. Now that BX has experienced the claims, they're adjusting their pricing accordingly. Basically, he said the actuaries blew it at the start and should have priced it higher initially.

Hi. My name is Mike. I am not a health insurance agent, I am a Lumenos 3000 subscriber. I own a small company with 2 employees. Myself and my asst. I have been a BC subscriber for years. Every rate increase we lower our benefits in a vain attempt to keep our rates down. My employee has health issues so we really can't afford to go elsewhere. We just got a rate increase from $750 a month to $950 a month.

In the past I have always been opposed to a single payer Canadian type of model. But now? I pay for my employees health insurance and it is now costing more than the monthly payment on both my luxury cars and 1/2 as much as my mortgage. And why? So BC can make additional profit in a downward economy.

Over the last year BC has not paid out 1 penny in benefits to me. As far as the physicals and blood tests and mammograms etc. costing BC money: that's a lie. I went to a network physician for a physical and BC found reasons to disallow 75% of his charges. So I ended up paying for most of it out of my own pocket. We paid out $9000 in premium last year, BC had to pay my doctor $250 for the physical and I paid out close to $400. And BC paid ZERO for the blood work.

Why BC would do this in an election year can only be chalked up to arrogance. As a consumer I am mad as hell. As I told my agent yesterday, "Blue Cross just gave my vote to Obama."

Mike

 

[TXINSURANCE]

Mike -

How much do you pay in CA for gas? How about state tax? Social Security? Federal Tax? Food? Luxury Cars?

You just need to shop around and have reasonable expectations. Your post is a good vent - no problem I respect that.

But to say BC is just trying to make more profit - do you know this as fact? Rates are rising for several reasons (profit one of them) , also costs are very high - you have the best health care in the world and are demanding a lot from it. At $950/mo as you described they might very well be losing money on you with risk calculated.

Be careful what you wish for - would you rather pay 20% more tax or $200 more a month in premiums? I think your issue is you would just rather not see the bill and you want someone else (government) to pay it.

I respect your vent I hear you loud and clear but shop it out a little and see if that is your best deal (maybe it is).

I bet the $950/mo is a small portion of your gross income. Smaller than if it were paid via taxes like so many people want. People making $100k , $200k, $300k and higher complaining about $500/mo in pre tax health premiums - I am not sure I am buying it.

If you are making $200k (example) and paying $6000 (your portion) in premiums this is 3 to 4% of your income - do you somehow think it would be cheaper if the government paid for it? What does the government do that works so great you would like to compare to?

I hear your vent and maybe next year you will have to get a smaller S class benz instead to pay for your premiums, but you will survive!

 

[Mr. Bill]

Mike - there's a reason why it's called "insurance" and guess what? Unlike your auto insurance, you don't have to have it. That would mean taking on your own risks. You also mentioned that your employee/associate has "health issues" so what does that mean? Perhaps YOU'RE not using plan services/benefits, but isn't your employee/associate?

It is certainly not "cheap" to run a health care company. Guess what, while you're whining about yoru premiums, the doctors are whining about their pay, their receptionists/nurses/hospitals are whining too, it's one big whine all around.

Usually, though, health insurance is the #2 cause of whines. The #1 is life insurance. Guess what? You'll NEVER benefit from that, either, if you use life insurance simply to pay your heirs/debt/obligations, whatever. You can simply leave this earth and everything behind, even the cost of your funeral.

So as far as your health insurance premiums, I'm not too sympathetic. Like every other form of insurance not mandated, you can check alternative prices on a regular basis and make the changes as you see fit, or simply drop the coverage and risk everything you own. Should you decide to move to Canada, great. Just know that for the important stuff, the Canadians come to the US and pay for their services. In other words, save up some dough first.

And if you think for one second that by voting in Barack or Hillary is suddenly going to change things, you really don't need health insurance, you need a shrink. You're delusional.

Good luck to you.

 

[GreenSky]

Hi. My name is Mike. I am not a health insurance agent, I am a Lumenos 3000 subscriber. I own a small company with 2 employees. Myself and my asst. I have been a BC subscriber for years. Every rate increase we lower our benefits in a vain attempt to keep our rates down. My employee has health issues so we really can't afford to go elsewhere. We just got a rate increase from $750 a month to $950 a month.

In the past I have always been opposed to a single payer Canadian type of model. But now? I pay for my employees health insurance and it is now costing more than the monthly payment on both my luxury cars and 1/2 as much as my mortgage. And why? So BC can make additional profit in a downward economy.

Over the last year BC has not paid out 1 penny in benefits to me. As far as the physicals and blood tests and mammograms etc. costing BC money: that's a lie. I went to a network physician for a physical and BC found reasons to disallow 75% of his charges. So I ended up paying for most of it out of my own pocket. We paid out $9000 in premium last year, BC had to pay my doctor $250 for the physical and I paid out close to $400. And BC paid ZERO for the blood work.

Why BC would do this in an election year can only be chalked up to arrogance. As a consumer I am mad as hell. As I told my agent yesterday, "Blue Cross just gave my vote to Obama."

Mike

Mike:

Have you considered individual plans in lieu of the group? Typically you will save about 1/3.

As far as the insurance company not paying out, neither did my homeowners policy, nor my auto. You don't buy insurance for the small stuff but for what MIGHT happen.

Rick

 

[thebeacon]

Those are some pretty high rate increases. i wonder what is the reason. i guess we still do not know the exact numbers. I tend to have a great luck with Kaiser HSA's, great plans

 

[Senateguy]

Anyone who tries to tell me what the health insurance company raises rates because of falty actuary tables is smoking the wacky tobaccy. I have been in health insurance for years. Its blantant why they raise the rates....BECAUSE THEY WANT YOU TO DROP THE POLICY! There is no money in buy and hold health insurance. The way the accounting system is setup for insurance companies all incoming premiums must be set aside for furture claims. This idea that a health insurance company can sell you a 180 dollar HSA that gives you 4 million bucks of coverage is totally freakin laughable. They know what they are doing. It doesn't take a genius to see it.

1.) create an application that a triathlete couldn't fill out honestly without answering yes to one of the questions. "Have you gained or lost 15lbs in the past 12 months?"

2.) sell the plan at a price that does not support market costs.

3.) bring the guy in, give him a 12 month rate lock in, (that coincidentaly falls into the contestable period for all claims), then jack his freakin rate up so he eventually drops it.

Health insurance companies know exactly how many people will drop the plan when the rate increases. They know exactly how many people will drop the plan after the second rate increase.. And they know exactly how many people will drop the plan after the third rate increase. Statistics have proven time and again that rarely does anyone hold on to a health policy for more then 3 years.

Its a scam. I have been in health insurance for many years...and there is no other way to describe it.

Bring the guy in with a low rate -- if he files a big claim comb over his application -- if he doesn't file a big claim raise his rate - the guy will eventually drop to switch to a cheaper carrier -- repeat cycle.

Anyone on the inside knows that this is the musical chair that is going on.

What is really sad is just like the oil companies, the health insurance companies are writing their own eulogies.

We will either have universal health care in 10 years or a health insurance system that is tightly regulated on the premium side and is guarenteed issue.

 

[Senateguy]

They raise your rates because some guy files a big claim???!!!!

THAT IS ILLEGAL!!!!!!!!!!!!!!!

My buddy showed me one chart and a bill on what it costs to treat a women for breast cancer.

Her treatment at the Moffit Cancer Center was 400K Bucks. Her total premiums paid was like 12K.

Ladies and Gentelmen that doesn't work!

Go run a quote on Life Insurance at tele-quote. Run a 1 milllion dollar term policy. It will cost you more than a health insurance policy for a 35 year old.

So you are telling me that a life insurance policy -- something that doesn't pay out unless you die -- is more expensive than a HSA which pays out 4 million bucks worth of coverage if you get really really sick!

What do you think is likely to happen more? Get sick or hurt ?? Or die?

The numbers are a joke.

Its bring the guy in with a low rate -- jack the premium -- he drops the policy.