Insurance Premiums Go Up for Over Half a Million Californians

Last week this story in the SF Chronicle got out attention - about 640,000 Californians insured through Anthem Blue Cross were just informed that their premiums would go up by an average of 30%, effective March 1st. In this economy, that's got to hurt the wallet, for sure. Not to mention that in the same week, Anthem settled to pay a $1 million fine for canceling coverage for over two thousand people because they had filed claims that were too expensive.

I wanted to talk to someone who had been affected by this, and so I called out to our Facebook group for help, and I got a hold of Bonnie Baron. She's 63 years old, a tutor in Oakland, and is insured with Anthem Blue Cross. She also happens to be an advocate for health care reform. I asked her to write to us, and tell us her story:

Hi Martina,

I work as a learning specialist, tutoring dyslexic students at a non-profit in Oakland. I'm an independent contractor, so my insurance with Anthem Blue Cross is through an HMO plan for individual members. The premium for this was raised 27% and is now more than 1/4 of my salary! I could not afford this if my husband and I did not live on our joint income.

In fact, I spoke to Anthem Blue Cross about changing plans. To change plans, customers usually need to go through a lengthy underwriting process. This is code for "examining people's medical histories to deny coverage if there are pre-exisiting conditions which could require costly treatment." Because the underwriting process is lengthy, there can be a break in coverage between one's old plan and the new one (if approved). I asked Anthem about this, and was offered another HMO that doesn't require underwriting. The representatives offered a plan with premiums similar to my existing ones, but none of my doctors accept this insurance (probably because the reimbursement rates are so low)!

So, I will keep the plan that I currently have and pay the exorbitant cost. I have filed grievances with the state of California and Anthem about the increase.

Strange to say, I am lucky. I have good coverage and will be able to pay the premiums. Millions of people will not be able to pay the increases. So many citizens in the United States can't afford any insurance, or pay for coverage that is inadequate for any treatment other than routine care. Medical costs are now the leading cause of personal bankruptcy. This crisis is now exacerbated because of the current economic situation.

These rate increases are particularly infuriating because it is well documented that 30% or more of every health care dollar is not spent on health care! Rather, that 30% goes to administrative costs--underwriting, processing and denial of claims--and to advertising, These are by products of a wasteful, for-profit health care industry that has thousands of different health care plans that divide, rather than pool risk, and therefore increase consumer costs and company profits.

I am a member of Single Payer Now, the local chapter of a statewide group supporting a state senate bill, SB 840, or a national legislation, HR 676. SB 840 twice passed the California legislature, most recently last August, but was vetoed by the governor. Mark Leno will be shepherding it through the legislature again this year. John Conyers of Michigan has recently reintroduced HR 676. You can read more about these at www.singlepayernow.net. There will be a meeting on March 7th at Centro de Pueblo in San Francisco about SB 840. Information about it is posted on the above web site.

Thanks.

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