THE FEDERAL government's latest report has healthcare rising to 17 percent of the Gross Domestic Product. Economists warn this is unsustainable, and Congress has agreed.
But what’s the reason for the ongoing cost increases?
Some have pointed to medical malpractice lawsuits, others to technological advances. Still others say if we would migrate from paper to electronic records, we could cut costs.
And almost everyone – from the far left to the far right – acknowledges that health insurance companies may have something to do with it.
An interesting story played out last month in regard to health plans and the public's unwillingness to take cost increases on the chin any more.
Anthem Blue Cross of California announced a 39 percent increase in premiums for some customers, while reporting earnings of 2.7 billion in the fourth quarter of 2009.
Department of Health and Human Services Secretary Kathleen Sebelius (who served as the health insurance commissioner of Kansas for eight years) wanted to know why. So did nearly 200,000 outraged petition-signers and members of the political advocacy group MoveOn.
So far, Anthem has not answered that question to their satisfaction, though it did offer to delay the rate hike for two months. In an e-mail message to its 5 million members, MoveOn leaders said, "The pressure is working. But a short delay isn't enough."
Robert Zirkelbach, press secretary for America's Health Insurance Plans, said Anthem's profits must be viewed in context. According to the Securities and Exchange Commission, he pointed out, nine of the Fortune 500 health plans reported an average 3.9 percent profit margin in the fourth quarter of 2009. In 2008, those same companies reported a 3.1 percent profit margin.
But is that justification enough?
The Democrats' remedy for "keeping insurance companies honest" would include a federal competitor for America's health insurance plans, also known as the public option. Republicans see the public option as the beginning of a complete government takeover of healthcare. The political intransigence over how to address the problems caused by the health insurance industry has been one of the biggest factors in halting progress on healthcare reform.
Who is responsible for the high cost of U.S. healthcare? On the table for primary consideration: Health insurance plans and Congress.