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Sebelius Responds to Letter from WellPoint
- Thread starter Pawnature
- Start date
- 3,863
Keep going!!!
People have no idea the failures of GI...
Here's the problem.
Of course it is difficult to understand when you are a freakin airhead that has never held a real job in the private sector.
Anyone with even a smattering of business courses knows it really doesn't matter what happened in the past when it comes to claims experience. Unless you know how to trend and lag claim reports you end up with *** remarks like Sebelius makes.
Of course, she is not looking at what Anthem made on their individual block, only what the parent company earned across all lines of coverage and over multiple states.
I have yet to figure out why we need departments like HHS, Education or why we need a Surgeon General. All of these are about as useful as teats on a boar.
Of course it is difficult to understand when you are a freakin airhead that has never held a real job in the private sector.
Anyone with even a smattering of business courses knows it really doesn't matter what happened in the past when it comes to claims experience. Unless you know how to trend and lag claim reports you end up with *** remarks like Sebelius makes.
Of course, she is not looking at what Anthem made on their individual block, only what the parent company earned across all lines of coverage and over multiple states.
I have yet to figure out why we need departments like HHS, Education or why we need a Surgeon General. All of these are about as useful as teats on a boar.
- 3,384
On my book of business the largest increases are occuring on the plans that are....closed! Can't imagine why a blocked plan would experience a large rate increase. Maybe future claims levels since only those who need the benefits will stay on the plan?
Average across for me is about 21%. It's high, but not brutal and there are downgrade options to new portfolio (or closed plans to new open version share plans (3500 or 7500)).
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Brian Sassi's letter to Sebelius.
http://www.davefluker.com/SebeliusLetter02112010.pdf
I think Mr. Sassi very clearly explained it. And for those not in CA, Kaiser and Blue Shield are the "two not-for-profits" he mentioned.
Average across for me is about 21%. It's high, but not brutal and there are downgrade options to new portfolio (or closed plans to new open version share plans (3500 or 7500)).
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Brian Sassi's letter to Sebelius.
http://www.davefluker.com/SebeliusLetter02112010.pdf
I think Mr. Sassi very clearly explained it. And for those not in CA, Kaiser and Blue Shield are the "two not-for-profits" he mentioned.
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- 2,908
Unfortunately, Sebelius has the "moral high ground" here. Yes, I know I could easily be shot for saying that but it is the simple reality of the situation. The public is unable to process the nuances of blocks of business, claims experience etc. They simply see their rates going through the roof and Wellpoints profits going through the roof. There is not a lib politician in town who would not want to have that in their hip pocket to run with.
As discussed, we are in a socialist, top-down regime now. You look at the profits of the company, decide how much (if any) profit a big bad corporation should get and then back into what the "premiums" will be. Already there in my state. And once one or more states does it, then it means the carrier either pulls out or rates are raised elsewhere to subsidize my state. And then it snowballs.......just as it is right now before our very eyes.
Sebelius is a do-do and, as stated, has no private sector experience, but she will have the public on her side here and she is also a former state insurance commissioner so she knows the turf, the issues, and the lingo. Not good. She is sort of a zero but people like Pelosi and Boxer will take up the cause and try to make up for lost ground in passing a larger bill and it will be blood in the water for a long time to come. And of course, the anti-trust exemption will be gone within the next month and that will give them a little win too.
As an important aside, watch for carriers to begin to restructure, spin-off, divest etc. to try to stay ahead of the commies who want to pare parent level profits with the need for rate increases (or not) on specific businesses or blocks. That's a nasty dynamic though because we need to be able to have healthy companies with good financials be able to take over troubled or marginal businesses and not penalize them for being healthy. The socialist mentality now is that if you have cash anywhere in the company you dont need anything. Again, thank you to all you folks out there for subsidizing my state where Anthem is showing a loss. What we will do next year or sometime on the horizon when Anthem pulls out I dont know, but hey, Wellpoint has cash so they wont do that, right?
As discussed, we are in a socialist, top-down regime now. You look at the profits of the company, decide how much (if any) profit a big bad corporation should get and then back into what the "premiums" will be. Already there in my state. And once one or more states does it, then it means the carrier either pulls out or rates are raised elsewhere to subsidize my state. And then it snowballs.......just as it is right now before our very eyes.
Sebelius is a do-do and, as stated, has no private sector experience, but she will have the public on her side here and she is also a former state insurance commissioner so she knows the turf, the issues, and the lingo. Not good. She is sort of a zero but people like Pelosi and Boxer will take up the cause and try to make up for lost ground in passing a larger bill and it will be blood in the water for a long time to come. And of course, the anti-trust exemption will be gone within the next month and that will give them a little win too.
As an important aside, watch for carriers to begin to restructure, spin-off, divest etc. to try to stay ahead of the commies who want to pare parent level profits with the need for rate increases (or not) on specific businesses or blocks. That's a nasty dynamic though because we need to be able to have healthy companies with good financials be able to take over troubled or marginal businesses and not penalize them for being healthy. The socialist mentality now is that if you have cash anywhere in the company you dont need anything. Again, thank you to all you folks out there for subsidizing my state where Anthem is showing a loss. What we will do next year or sometime on the horizon when Anthem pulls out I dont know, but hey, Wellpoint has cash so they wont do that, right?
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