Wellpoint raises premiums in California

Sen. Harry Reid (D-NEV) got on the Senate floor today to crucify Wellpoint for health insurance premium increases. He did not elaborate on anything vaguely resembling facts. He said that Wellpoint and other "greedy insurance companies that care more about profits than people" are an excuse to ram nationalized medicine down the throats of the American taxpayers. This reminded me of an article Dana Milbank (Washingtonpost.com) wrote about Mr. Reid back when he introduced his own bill with the public option (aka socialized medicine). He did not consult any of his fellow senators; democrat, republican or independent. He just did it out of the blue sky. Mr. Milbank wrote that this was unusual behavior for Mr. Reid, who was known mainly for just bringing pork barrel funds to Nevada. Mr. Milbank thought the real motivation for Mr. Reid's newfound concern for all his fellow Americans was the difficult re-election he faces this year. By becoming an advocate for the public option, Mr. Reid hoped to win over more left wing liberals in Nevada.

I have to agree with Mr. Milbank. Mr. Reid's motivation is self preservation of his Senate seat, not any newly awakened compassion for taxpayers with rising health insurance costs.

Wellpoint's CEO of the consumer business unit, Brian A. Sassi, pointed out that California consumer business unit has been losing customers due to the recession and higher health care costs. Healthy people are dropping insurance or buying less expensive plans. When this happens there is less revenue to cover the sicker & older people who keep their plans. He also pointed out that the House and Senate bills have been watered down on the issue of universal coverage. The penalties for not buying insurance are too low to enforce compliance with any requirement for universal coverage. Unless Mr. Reid and his universal health care left wing cronies are willing to start fund drives to cover these losses, the premiums will go up or Wellpoint will have to get out of the individual health insurance business in California.

Of course, Congress will hold hearings about these increases. What else is new? This is just demagogues putting on a show. I have no doubt part of Mr. Reid's rise in attacks on the insurance companies for being insurance companies is another effort to get himself re-elected.