Is our US health care system getting the job done?

[Doug]

From the AP Today:

The market concentration for health insurance is so monopolized in some areas that insurance companies are willing to raise prices and lose customers in an effort to improve their bottom line, a leading insurance broker told Wall Street analysts on Wednesday.

In a conference call organized by Goldman Sachs Global Investment Research, Steve Lewis, a highly regarded broker at the world's third largest insurance broker, Willis, painted a picture of the health insurance market in which employers seem likely to be priced out of coverage.

Noting that "price competition" between insurers was "down from a year ago," Lewis relayed that "incumbent carriers seem more willing than ever to walk away from existing business."

The phenomenon of insurers pricing their policies beyond where consumers can afford it seems to be already taking place. Last month Anthem Blue Cross told customers it would hike their health insurance premiums by as much as 39 percent (with the expectation that some would drop coverage altogether). In December, it was reported that Aetna was planning on losing more than 600,000 customers by raising prices on their consumers in 2010.

Insurers are able to do this in part because the markets in which they operate have no adequate competition, suggests Lewis. The broker noted that "the smaller client segment" was "increasingly frustrated" with the renewal of their coverage and was "evaluating potential self-funding with stop loss protection" instead. Lewis added that employers in many markets knew "that they're not going to be able to trade down pricing very significantly" (i.e. find cheaper coverage) and, as such, would likely only change plans or become self-insured if there was a "fairly significant" disruption in service.

"As I mentioned at the outset, it was without a doubt the most challenging renewal cycle in my 20 years of this business with employers really struggling with how and what was going to drive their decision, combined with the lack of aggressive and competitive pricing in the marketplace," Lewis said.

The remarks are as clear an indication as any that while the health insurance industry suffered greatly from the recession it remains remarkably well positioned to recoup those profits going forward -- principally because companies can raise prices without worrying about the market hit it will take.

[rmadamy]

From the AP Today:

The market concentration for health insurance is so monopolized in some areas that insurance companies are willing to raise prices and lose customers in an effort to improve their bottom line, a leading insurance broker told Wall Street analysts on Wednesday.

Is there a problem in the auto insurance market with monopolization? Are companies such as GEICO, Allstate, State Farm and many others allowed to freely sell auto insurance in any state with each state setting the minimums? Why do the Dems not want the same structure in the health insurance market?

[Doug]

From the AP Today:

The market concentration for health insurance is so monopolized in some areas that insurance companies are willing to raise prices and lose customers in an effort to improve their bottom line, a leading insurance broker told Wall Street analysts on Wednesday.

Is there a problem in the auto insurance market with monopolization? Are companies such as GEICO, Allstate, State Farm and many others allowed to freely sell auto insurance in any state with each state setting the minimums? Why do the Dems not want the same structure in the health insurance market?

Most auto insurance crosses state lines (if the insurer wants to), the health insurance market is FAR more complex and complicated. You can't just sell insurance like in the auto industry, you have to create a panel of providers with reimbursement schedule that they will agree to. In addition, every state has far more insurance regulations governing health insurance than they do auto insurance. Thus, almost every state has some subtle, but significant differences. Whereas, auto insurance is more of a commodity, when it comes to state regulation. Why do you say the Dems do not want competition?

[Ajax68]

Why do the Dems not want the same structure in the health insurance market?

Wow, where does this misinformation come from? The public option idea, moreover the whole drive for reform, stems largely from the current lack of competition in the health insurance market. Where do you see competition in the current system? What recourse do people who are denied coverage for spurious pre-existing conditions have?

[msh]

From the AP Today:

The market concentration for health insurance is so monopolized in some areas that insurance companies are willing to raise prices and lose customers in an effort to improve their bottom line, a leading insurance broker told Wall Street analysts on Wednesday.

Is there a problem in the auto insurance market with monopolization? Are companies such as GEICO, Allstate, State Farm and many others allowed to freely sell auto insurance in any state with each state setting the minimums? Why do the Dems not want the same structure in the health insurance market?

there are something like 22-24 states that have NO regulation of health insurance companies/policies. If nationwide insurance were to be allowed - it is reasonable to think that companies would just settle in and sell from non-regulated places. . .and take more advantage of customers.

Democrats have been fine with more nationwide policies, as long as there is a federal oversight agency in charge of protecting consumers who get those policies. Not surprisingly, Republicans are opposed to this sort of consumer protection (as they are opposed to creating a consumer protection agency as part of the finanical regulation legislation)

[Doug]

http://voices.washingtonpost.com/ezra-k ... _pres.html

[Doug]

Jonathan Cohn writing about health care cost control

http://www.tnr.com/blog/the-treatment/w ... st-control

[Doug]

The R's have done an effective job of demonizing this bill -- death panels, government takeover, socialism, etc. Nevertheless, when you look at most of the components, citizens want them. But many people are misinformed -- they actually believe some of that stuff. Yet, just because a bunch of people believe that Saddam had something to do with 9/11 doesn't mean that he did.

Does the DNC email you talking points every morning? :)

You can't have it both ways. You can't imply that the public likes individual aspects of the bill because they are informed but don't like the total package because they are misinformed.

This debate has been going on for a year. It started out as being popular but soon turned negative. Obama gave it a boost in the polls back in Sept but that soon evaporated. I am not sure his summit will give it a similar boost. The public knows what is going on. They are not misinformed. IMHO

A recent poll in the WSJ (I'll find the link) showed support for Obama's plan at 38%. However, when people found out the specifics of what was in the plan, support jumped to 58%

[blackknight]

there are something like 22-24 states that have NO regulation of health insurance companies/policies.

There are not. C'mon, man, do you think anyone is going to believe that? Name a few. You mean they let them practice witchcraft?

[Doug]

there are something like 22-24 states that have NO regulation of health insurance companies/policies.

There are not. C'mon, man, do you think anyone is going to believe that? Name a few. You mean they let them practice witchcraft?

He said health insurance not health care.