It’s tempting to blame health insurance companies for recent double-digit rate hike proposals, but the rising prices point out a more basic problem: The health care marketplace needs reform more than ever.
Anthem Blue Cross has stoked outrage by seeking a 39 percent rate hike on some individual policyholders in California. In Maine, the company wants to raise individual rates 23 percent.
This is a hardship for customers who aren’t eligible for group coverage; and as the cost of individual policies rises, fewer healthy people purchase them. This is not a good outcome for Anthem, because it faces declining revenue and rising costs.
Faced with a public outcry, Anthem’s proposal to hike rates for individual policyholders in California has been placed on hold. Nevertheless, the company still defends the need for a rate hike.
“Our decision to agree to postpone the rate adjustments does not change the underlying issue,” said Brian Sassi of Wellstone, Anthem’s parent company. “All health plans are in the same situation, trying to deal with the steadily increasing medical costs in the delivery system, which are not sustainable.”
One key to solving the problem would be to require everyone to have health insurance. With everyone covered, the system would be more stable. Healthy people would purchase peace of mind, and cover the costs of caring for the ill. That simple requirement could still be a starting point for health care reform.
Congressional efforts to reform health care have been stalled since the end of last year. Unless a bipartisan effort takes shape, we can expect the problems of costs and coverage to continue to grow.
Health care reform efforts in Congress lost support when they moved behind closed doors. At this moment, no one can predict whether the administration, or Senate Republicans, have the ability or the inclination to restart the process.
But if efforts to reform health care do not resume, we can expect individual hardships and state-by-state regulatory battles to multiply.
The U.S. already spends a fortune on health care; the challenge is to spend more effectively. The essence of reform will be for everyone, including consumers, businesses, Medicare recipients and the health care community to be prepared to make a contribution.
Hospitals, drug makers, insurers and physicians have all promised concessions to stabilize and reform U.S. health care. Unless reform efforts resume, these pledges will soon expire.
— Comments? Contact Managing Editor Nick Cowenhoven by calling 282-1535, Ext. 327, or via e-mail at nickc@journaltribune.com.
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