California health insurers to raise average rates 8% to 14%

[flamingdem]

http://www.latimes.com/business/la-fi-0223-health-insurance-rate-hikes-20120223,0,7634380.story

California's largest health insurers are raising average rates by about 8% to 14% for hundreds of thousands of consumers with individual coverage, outpacing the costs of overall medical care.

The cost of goods and services associated with medical care grew just 3.6% over the last 12 months nationally, government figures show. But insurance premiums have kept climbing at a faster pace in California.

Insurers defended their rate hikes, saying they are based on their claims experience with the customers they insure and not just the broader rate of medical inflation. They also say that healthier members dropped out of the individual market as premiums rose and the economy worsened in recent years, leaving behind a group of policyholders who have higher average costs.

"We will continue to examine the fundamental issues at the heart of rising healthcare costs, including the prevention of chronic disease, increasing the quality of care and reducing unnecessary health expenses," said Darrel Ng, spokesman for Anthem Blue Cross, the state's largest for-profit health insurer.

Consumer advocates and others are skeptical, however, questioning whether insurers are doing enough to hold down costs. MORE AT LINK

[msongs]

1. Mr. Ng could take a 50% pay cut to help out the sick people being gouged by for profit

"let the sick ones die" health care