Mich. regulators OK Blue Cross (22%) rate increase deal

[Bozita]

Source: Detroit News

Thursday, August 13, 2009
Mich. regulators OK Blue Cross rate increase deal
Christina Rogers / The Detroit News


State insurance regulators have approved a request Thursday by Blue Cross Blue Shield of Michigan to hike rates by an average of 22 percent on about 163,000 policies bought by people who pay for their own medical insurance.

The approved increase is less than the original request from Blue Cross, which would have hiked monthly premiums on its non-group policies an average of 56 percent and its group-conversion policies an average of 41 percent. The state's insurance commissioner also approved an interim increase of 4.7 percent on Blue Cross's supplemental Medicare policies, known as Medigap, which will affect more than 200,000 seniors in Michigan.

Last week, Blue Cross and Attorney General Mike Cox struck a deal in which the state's largest insurer agreed to ask for less. The 22 percent increase goes into effect October 1.

Read more: http://www.detnews.com/article/20090813/METRO/908130465/Mich.-regulators-OK-Blue-Cross-rate-hike

[Schema Thing]

1. Well that should really encourage small business.

[valerief]

2. Who in America wouldn't want insurance like that?

:sarcasm:

[MadMaddie]

3. We need to put these companies out of business

There is no reason for premiums to increase by this much. The CEO's are not taking any cuts in pay.....

[earthboundmisfit]

4. I hope this gets a lot of exposure

Great timing on this coming out!

[Grinchie]

5. Ah yes, Insurance in Name Only, or the Illusion of Insurance.

One step closer to "Consumer Driven Insurance". If you feel lucky, you'll pay less! and Get Less too!

[nc4bo]

6. damn. Freeptards: " We just love our health insurance companies."

[katsy]

7. Last week, they got a 20% increase in CT

from the State Ins. Regulators.

http://www.courant.com/business/hc-blumenthal-urges-rate-hike-reforms-0812,0,863775.story

[babylonsister]

8. What?? Michigan?? Doesn't seem prudent. nt

[dixiegrrrrl]

9. News reports of Blue Cross CEO pay increases:

Published: Fri, Mar. 10, 2006 12:00AM
newsobserver.com

Blue Cross' top 10 executives earned $10 million last year, with CEO Bob Greczyn making $2.5 million.
The 18 percent pay raise for the insurer's top brass comes as Blue Cross and Blue Shield of North Carolina's profit and membership continues to grow.
Blue Cross, the state's largest health insurer, came under fire last year for its increasing rates, its high profits and corporate spending on trips to the Caribbean and the U.S. Open. Last week, it reported that its profit increased 7.5 percent to $167.6 million in 2005.
*****************************************************************************************

Published: Sat, Mar. 03, 2007 12:00AM
newsobserver.com

Blue Cross CEO gets hefty raise
The nonprofit company increases executives' pay as premiums rise for medical insurance.

Blue Cross and Blue Shield of North Carolina, which has come under fire for big profits and premium increases, paid its top executive $3.1 million last year, a 22 percent raise.
Several senior executives also received double-digit raises. Three earned more than $1 million in annual compensation for the first time, according to the company's annual report, which The News & Observer obtained from state regulators Friday.
The increases were driven by bonuses that chief executive Robert J. Greczyn Jr. and other executives earned for boosting Blue Cross' financial performance, said spokesman Mark Stinneford.**********************************************************************************

The Boston Globe
Blue Cross CEO's pay rose 26%
By Jeffrey Krasner
Globe Staff / February 28, 2009

The salary and bonus paid to Cleve L. Killingsworth, chairman and chief executive of Blue Cross and Blue Shield of Massachusetts, increased 26 percent last year, to $3.5 million, even though the health insurer's membership declined and its net income fell 49 percent.

Based on previous years' retirement benefits - which Blue Cross-Blue Shield did not report for 2008 - Killingsworth's total pay package was likely about $4.3 million, making him by far the highest paid healthcare executive in Massachusetts.
The jump came during a tough year in which Blue Cross-Blue Shield's business was affected by the stock market decline, the recession, and the increasing cost of medical care.

[xchrom]

10. huh -- wow -- what's the unemployment rate in michigan again? nt

[quakerboy]

11. Wait....

I would think they would be doing their best to hold off of any increases until they can kill this reform push. Not good publicity, at least for those 163000 people on the policies in question.

[bkkyosemite]

12. Bastards!

[BeatleBoot]

13. Mike Cox (R) is running for Governor in Michigan

Jennifer Granholm is term limited.

[high density]

14. So were all the teabaggers out in front of BCBS celebrating this rate hike?

They apparently love paying these high costs.

[dflprincess]

15. And this is one of the outfits the President and Congressional dems

want to keep as part of the system.

Makes sense to me.

[Lagomorph]

16. Another report

'Blue Cross says Michigan has a "broken regulatory system" and is seeking changes to state law guiding the insurance market. Blue Cross, which can't turn away customers willing to pay for health coverage, says it often gets saddled with expensive patients who have been rejected by for-profit companies.

"Because of financial losses and the prospect of a lengthy rate-setting process, we determined new rates were needed sooner rather than later," Blue Cross spokesman Andrew Hetzel said in a statement.'

http://www.wilx.com/news/headlines/52627047.html

[Lagomorph]

17. More...

'Blue Cross says its executive compensation is fair measured against both commercial insurers and nonprofits because it must pay enough to retain top talent. Critics, including Attorney General Mike Cox, say Blue Cross spends too much on administrative costs such as salaries. Cox said the average compensation for Blue Cross' top 10 executives rose 42% between 2004 and 2006.

"Those are significant pay hikes for a charitable and benevolent nonprofit, and they stand in stark contrast to what's happening to families and workers, who have seen their purchasing power erode in the face of plant closings, mortgage foreclosures and higher gas prices," Cox said in an e-mail to the Free Press last week.'

http://blogpublic.lib.msu.edu/index.php/2008/05/19/are-blue-cross-blue-shield-of-michigan-o?blog=5

[scentopine]

18. Someone's gotta pay for those CEO and exec bonuses- nt

[harmonicon]

19. fucked right up

[DRoseDARs]

20. Oh goody. Is that what I get to look forward to come April here in Nevada?

I'm already making negative income as it is for individual bargain bin coverage. As it is I may have to cancel my policy or go a-begging to family for help to pay for continued coverage before the end of the year unless I can get a second job (lost my other one, and the positive income that came with it, back at the beginning of the year). At 22%, that only pushes the deadline closer for me. A rate-rape of 56%? That would take me three months of bi-weekly paychecks to pay for one month of coverage. Fuck that and fuck BCBS.

[WriteDown]

21. Who the HECK are these regulators?! nt

[glinda]

22. My mouse just about flew off my table when I spazed at reading that becasue

I have BCBS. oh crap. They already raised my rate three times in less than a year.

[Doctor_J]

30. I had BCBS in MI

my rates went up so much last year (despite the fact that my only claims are for 3 generic prescriptions) that I had to jump over to my company's HMO option.

[moonbatmax]

23. *SIGH*

I just got switched over to BCBS when State Farm went and jacked my rates.

Took two freakin' months just to get THAT done.

Fat lot of good it did me.

:banghead:

You know, seriously, I like the agents who tried to help me.
They really are nice guys, but if this shit keeps up,
I'll be the first to cheer when their employers go out of business.

Public Option NOW!

[OneBlueSky]

24. Reason #759: Why we need universal single payer healthcare . . .

and why healthcare for profit is so outrageous that it's immoral . . .

[Orsino]

25. Now THAT'S the America I grew up in!

Jesus H. Christ.

[leftynyc]

26. Just in time for the President's Town Hall

in Montana. Should be one of the first things out of his mouth.

[alfredo]

27. Blue Cross just helped Obama's cause.

[undeterred]

Whose side are they on anyway?

[undeterred]

28. Maybe this will change some more minds.

[Doctor_J]

29. Right in the middle of the health care debate

now that's chutzpuh

[glinda]

35. They do this so that when it passes and they have to lower it 20% they will still be ahead.

[merwin]

31. Our Regence Blue Shield has gone up 40 percent

in the last 2 years causing us to have to switch to one with a 3000 deductible from a 500 dollar one. My employer does not provide insurance

[lovuian]

32. today 22 % tomorrow 44% the next day 64%

Hell why not 100%
whose going to stop us

the government Baaaawaaaahaaaa

[ellie]

33. Hey!

This is my insurance company! What a bunch of shit.

[roamer65]

34. I am sure my company will drop the PPO with these rate increases.

This rate increase means more people with no or inadequate insurance.

Single-payor Medicare now!!!

[Bozita]

36. A RW MI small store owner in a dying stripmall told of $1500/mo for family plan last year.

It's a mom'n pop shop. Couple with two teens.

I asked her if that wasn't a hidden tax on small businesses. Pointed out that in Canada, only five miles away as the crow flies, healthcare insurance wasn't a problem.

"I don't know."

If I calculate correctly, she's gonna be paying $1830/mo.

$330/month more.

$20,500 per year.

If you're looking to open a business in a strip mall in which the anchor is dying a slow death, let me know.