Insurance companies are demanding large increases in premiums

In February this year, the Department of Health and Human Resources has prepared a report, issued an alarming trend for the increased insurance premium-rate hotels. This is not limited to one or two states. This is not limited to one or two percentage increases in the rates. This is all leading insurance companies demand the right to significantly higher premiums: Hikes in Michigan by 56% in California hikes of 39%, and so on. Is this only a small number of affected policyholders, it might go unnoticed. But, with millions of policyholders affected throughout the country, this increase have calls for full control of the federal government tightened. Secretary Sibelius was leading the attack with the applications to advance the reform agenda. Because of the national anger, some companies have stopped. WellPoint had proposed the increase, with effect from 1st March. Any increase, even if adopted by states will now be delayed until May at the earliest. This decision is partly in response to the invitation of Chief Executive Officer WellPoint’s to Washington to justify the requested increase. Insurance companies find themselves in a difficult political situation. Your management team accepted the duty, profits for the benefit of the shareholders to maximize. Take a look at an America seriously affected by the recession. More and more people are not able to afford the premiums, some because of unemployment, others because of a credit squeeze. More troubles in the insurance industry is that more healthy people decide to not even insured. That is, the group of people hold political left has a higher percentage of people with existing health problems. Without more healthy people in the group payment of premiums and not saying it is more expensive to insure less healthy people to stay. It is also a verified fact that hospitals and health facilities service professionals have also been increasing their fees and charges. The pharmaceutical companies have the price of almost all of the most commonly used drugs increased. The insurance industry is under pressure from both sides. As secretary Sibelius points out, however, this is not a completely accurate picture. Every year insurance companies be required to submit reports to all U.S. states in which they are licensed to sell insurance policies. These data show, many companies actually increased the number of insured persons in 2009. The market in health insurance plans is complicated by the political situation. Democrats and Republicans are two armies do not agree to a truce long enough for some reforms. It looks like there is no immediate danger that medical costs are controlled. If the costs are rising faster than inflation further, the insurers have no choice than to increase their premiums. If they do not, they are not paying enough cash in hand, to all claims. This means for the average person, it will become increasingly difficult to find affordable health insurance. be for those with pre-existing condition, group health insurance is the only option, but for these plans, the premiums to their fastest rising prices. For years, it is obvious that the health care industry is broken. It would be paradoxical if these come close with some sensible reforms, we saw not only the reform change in Washington lost, but found all of the big insurers imposing massive rate increases. That would really be the last nail in the coffin.