Insurers raise premiums, deny surpluses
Washington state-based health insurance companies have continued to increase their premiums even though they are suspected of having $2 billion in reserves. Retired Spokane insurance consultant Curt Fackler supports a bill that was sent to Washington which would require the insurance companies to return the excess reserves to policyholders. The insurance companies, which deny the surpluses, cite skyrocketing healthcare costs as the reason for premium increases.
Payer grants $7 million to safety net providers
Northern California’s public hospitals, community clinics and related organizations that make up the area’s health-care safety net have received $7 million in payer grants. Through the grants, Kaiser Permanente hopes to fund healthcare information technology, heart attack and stroke prevention and quality improvement efforts. Kaiser Permanente’s goals involve equipping these organizations with funding for training and technical support to enable high-quality preventive care, which in the long run will cut costs for public hospitals and clinics.
BCBSA criticizes Stark’s Medicare reductions
House Ways and Means Health Subcommittee Chairman Rep. Peter Stark’s (D-Calif.) proposal to reduce reimbursements to Medicare Advantage plans “would be a disaster,” the Blue Cross and Blue Shield Association has said. According to Stark, reduced reimbursements to the payer-friendly plans will free up funding for other healthcare proposals. BCBSA has argued that cuts to Medicare Advantage, which currently provides coverage to more than 8.3 million people, would hurt minority and low-income populations.
Strong profits tied to Medicare Advantage plans
Humana Inc. has reported that its fourth quarter profits doubled, due primarily to increased enrollment in Medicare Advantage plans. Their earnings per common share revealed an increase of 62 percent from Dec. 31, 2005 to Dec. 3, 2006. Michael B. McCallister, Humana’s president and chief executive officer, said, “Strong fourth quarter results capped off a record-breaking year in which Medicare membership growth dramatically increased Humana’s size, geographic reach and brand awareness.”