Lee Gilbert: Health insurance premiums: A cautionary tale

Recently Anthem announced large health insurance premium increases in California which the Obama administration has questioned.  These increases mirror the increases that happened in Colorado in January.  Here is a link to the story on ABC news and my letter follows -

http://abcnews.go.com/GMA/white-house-presses-anthem-blue-cross-rate-hike/story?id=9784888

To the Editor:

Anthem Blue Cross/Blue Shield isn’t just screwing over people with individual policies in California by imposing huge premium increases as reported recently.  Here in Colorado I have been insured with an individual plan under what is now Wellpoint Anthem Blue Cross Blue Shield for over a decade.  For several years the plan was affordable and provided reasonable coverage.  This is no longer the case.

In 2008 my monthly premium was $350.  Last year it went up to $405/month and this year it is a whopping $540/month.  That represents an overall increase of 54% in just over a year.

Anthem blamed the increase in Colorado on “the escalating cost of health care”.  This is false.  Their premium increases have forced people out of the insurance pools and that leaves behind only those with higher expenses.

Anthem’s action takes advantage of a very vulnerable group of people.  The people who remain in the pool include many people who have become “uninsurable”.  They cannot simply leave Anthem and find insurance elsewhere and are forced to accept whatever premium increases Anthem imposes.

Lee Gilbert
Boulder

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