Insurers’ Hike in Premium Rates Puts the Common Man under Pressure

Insurers’ Hike in Premium Rates Puts the Common Man under Pressure

With the health care bill still in process, private insurance companies in the U.S have increased health premiums.

Kathleen Sebelius, Health and Human Services Secretary, said, "15,000 people a day lose their insurance, and some of those folks are being actually priced out of the marketplace".

Major insurers have raised the premium rates for individual policies, i.e., people who are not covered by employer. While in Michigan it jumped by 56%, more than 25% increased in California, and 20% or more in Oregon, Maine, and Connecticut. 

California’s top health insurance company, Anthem Blue Cross has increased its premiums by 39%, and consumers are worried about this sharp hike.

Ilene Lisak, one of the customers of the company said that she was informed by letter that her $525 a month premium is going up to $708.

"I was so overwhelmed. I just started crying", Lisak said.

However, customers’ raising hue and cry has compelled Anthem to delay the rise in rates till May 1. 

Meanwhile, Anthem's parent company, Wellpoint, reported$380 million revenue in the fourth quarter last year.

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