You’re paying more for health care despite $1B insurance surplus
Jan 8, 2013, 8:09 AM | Updated: 10:49 am
Despite healthcare reform, you are likely going to continue paying more for your health insurance, even though your insurance company has extra cash on hand. (AP Photo/File)
(AP Photo/File)
Despite healthcare reform, you are likely going to continue paying more for your health insurance, even though your insurance company has extra cash on hand.
Washington State Insurance Commissioner Mike Kreidler joined Seattle’s Morning News on Tuesday and said some insurance companies are raising rates by eight or nine percent. Others are worse – Premera’s LifeWise went up 22 percent.
Kreidler has to approve rate increases like these when the groups are paying more in health care costs. He oversees to make sure that for as much as the companies are raising rates, they’re actually paying out that amount of money to hospitals, doctors and pharmaceutical companies, making sure the cost is justified.
“I don’t have an alternative except to approve it. I’d be overturned if they challenged it,” said Kreidler of the rate increases.
It won’t be the end of the rate increases either, according to Kreidler. The hope, he said, is to instead stabilize the rates so that it doesn’t out-pace the gross domestic product.
Still, non-profit health insurance groups are carrying hundreds of millions of dollars in surplus cash.
Kreidler will ask the legislature once again to take surpluses into accounts when considering health insurance rate increases. “I’m hoping this time we’ll be successful in getting the authority to do what they do in 11 other states including Oregon […] and take those excess surpluses into account.”
Even while asking for their customers to pay rate increases, three major health insurers are carrying surpluses of more than a $1 billion.
KIRO Radio’s Kim Shepherd contributed to this report.
