Sunday, January 16, 2011

Blues vs Shecantbeserious: The Plot Thickens

Last week, we reported that the California Blues were playing a bit of "chicken" with their rate hike request. To wit, an astounding 59% increase in premiums. The Golden State's Department of Insurance responded by asking the carrier (and others) to delay their proposed increases for two months, but lacks any enforcement powers to make them comply. Which turns out to be a good thing, given this:

"The company said it expects to lose $20 million to $30 million this year on individual policies."


But how could that be, since ObamaCare© promised to lower health care costs?

Well, not so much:

"In the past three years, the company said, its costs for hospitals, physicians and prescription drugs have risen by an average of 15 percent annually."

That's 45% right there; add in another 10 or 15 points or so since the advent of ObamaCare© last September, and Bob's your uncle. It's not a stretch, then, to see how these numbers make sense. The ball is now in Ms Shecantbeserious' court: does she have the will, let alone the means, to derail these increases?

Time will tell.
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