Health Insurance Solutions Blog

56% health insurance company profits? Absolutely not!

On my way home from a BCBSNC meeting today, I stopped to indulge one of my guilty pleasures, eating at McDonald's, and a less-guilty pleasure, reading the Charlotte Observer. I practically choked on my chicken strip when I came upon this letter to the editor on the Forums page:

In response to "Health care insurers' profits up 56% in '09" (Feb. 12):
Huge profits to health insurers while uninsured die? Shameful
So health care insurers made a 56 percent profit in 2009, and there's no chance for reduced insurance bills in 2010?
Ironically the billions of dollars healthcare insurers have spent on lobbying politicians to keep the gravy train running would provide quality health care for every man, woman and child in America.
When health care is available for everyone, healthy babies become healthy adults who are productive and patriotic. To read that 44,000 people in the U.S. died last year because they couldn't afford health care is a disgrace.
L.T. Cantrell
Charlotte

I couldn't get in my car and head back to my computer fast enough! Since the odds that my letter will make it into print are probably slim, and make it into print unedited are slimmer still, here is my response:

BlankNo, no, NO! Obviously, someone needs a tutorial in basic business mathematics. A 56% increase in profits is not even remotely similar to Cantrell's erroneous statement that "health care insurers made a 56 percent profit in 2009." If a health insurer made, for example, a 2% profit in one year and then made 3.12% profit the next year, THAT is a 56% increase. And shame on you, Charlotte Observer, for printing a letter in the forums with such an erroneous and inflammatory statement!
 
We all know our health care system and methods of paying for said health care need fixing, but painting health insurers' low single-digit profits as the problem is putting the blame in the wrong place when pharmaceutical and medical equipment companies' profits are in the high teens.
Sharon Nuttall
Charlotte

I'm well aware that the Forum is open to everyone and is designed to be an opinion page, but you and I know that people see things "in the paper" all the time and assume they are accurate. I know the beleaguered Observer is down to about 2 full-time staffers, but wouldn't you think someone would have caught that egregious misstatement? And I'll try (probably unsuccessfully) to avoid thinking that it just might have been allowed to "slip" through in an un-accidental way.



 

Declined for health insurance coverage?

February 1, 2010
Nobody likes rejection. And it really feels bad (and scary) to be rejected, officially called "declined," for health insurance coverage. We agents don't like it either, but it's a fact of life in our world and one we have to help clients with.

If you've been upfront about any health issues during early discussions with your agent, he or she should be able to give you an idea of what to expect in terms of underwriting outcomes. Most (but not all) carriers make available to agents a list of cond...
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Individual health insurance has gone green!

January 27, 2010
It didn't occur to me until just recently (um, like yesterday) that the way I do business nowadays is WAY greener than it used to be. How so, you ask? Well, let me iterate some of the "old" ways:
  1. Everything used to be on paper. Everything! Paper brochures, paper contracts, paper rate sheets, paper marketing materials, and on and on.
  2. All that paper stuff changed constantly and so was delivered to me regularly in (you guessed it) paper envelopes and cardboard boxes.
  3. All that paper and cardboard st...

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Is a short-term health plan a good option for you?

January 19, 2010
A short-term, or temporary, health plan might be just what the doctor ordered for some situations. If you'll have a coverage gap of of just a few month until other coverage (employer-sponsored, Medicare or an individual health plan) is set to begin, it can be the perfect filler.

I usually don't recommend that short-term coverage be used in place of a regular major medical plans because of its limitations. Pre-existing conditions and annual physicals are not covered. However, in those situatio...
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Do your health insurance premiums make sense?

January 12, 2010
Everybody complains about them but most don't do anything about them. I'm talking about health insurance premiums.

When was the last time you ran the numbers to see if what you're paying makes sense for your situation?

If you're dealing with major illness and have been in and out of the hospital and are receiving ongoing treatments, by all means, stay with what you have. You're most likely getting WAY more than your money's worth! (Which brings me to a question for a whole other day: why do p...
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HSA Health Plan = Different Way of Practicing Medicine?

January 8, 2010
Bill and I (and many of my clients) have an HSA-qualified high deductible health plan. The premiums are wonderfully low, but of course we had to give up a few things to get those low premiums - like office visit and prescription drug copays. We have found it an excellent trade-off. (And, by the way, we do have full coverage for our annual physicals.)

What hadn't occurred to me was how differently doctors tend to practice medicine when there aren't any copays. A key part of this has been that...
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High Premiums? Don't rush to drop coverage!

November 14, 2009

Health insurance rate increases happen - no big news there. And sometimes, they're either just too big to
swallow or they're the proverbial straw that broke the camel's back. But it really concerns me when I have a client who lets their policy lapse without ever having contacted me and who doesn't reply to my calls or emails.

There are almost always alternatives to just dropping health insurance coverage altogether. Even if you're healthy and "never" go to the doctor, going without coverage is...

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Sharon Nuttall 704-366-4977 / 877-261-2624

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