Monday, January 09, 2012

Health Insurers making out fine, thank you

Before it flip-flopped on ObamneyCare©, the Association of Health Insurance Plans (AHIP - an industry lobbying group) was "all in" on nationalizing health care. Eventually, its members appeared to "see the light," and backed off its blatant support.

Or did they?

Well, the various carriers which make up AHIP's membership seem to be doing quite well by ObamneyCare©, even as the agents which represent them take a major haircut. According to the Washington Post:

"[T]he nation’s major health insurers have prospered in large part by expanding their role in government programs such as Medicare and Medicaid ... The share of large insurers’ revenues contributed by their Medicare and Medicaid business has jumped from 36 to 42 percent over the past three years."

That's about a 15% increase. Now, what happened three years ago that might have somehow affected health insurers and how they do business?

'Tis a mystery, that.

Now, I have no particular problem with carriers making hay off their Medicare/Medicaid business (I want them to be around to pay my claims, after all). The problem lies in this little tidbit:

"[T]he private companies are hired to run managed-care plans as an alternative to the traditional fee-for-service plans provided by the two programs ... The practice is attractive to states seeking to curb spending on Medicaid, which is funded with a combination of state and federal dollars"

So we're basically paying taxes and insurance premiums for the same service(s). Does this seem right to you?

[Hat Tip: FoIB Holly R]
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