The WellPoint Mugging

WSJ ^ | 2/17/10 | editor

[Nachum]

The brawl over rate increases is a preview of ObamaCare.

Democrats and their media allies have found a new insurance piñata: WellPoint and its recent health-premium price increases in California. This spat deserves more attention, because its real lesson is what will happen to health insurance costs around the country if ObamaCare passes.

WellPoint's California unit, Anthem Blue Cross, recently informed nearly 700,000 individual insurance customers of premium increases of up to 39%. President Obama jumped on the announcement, claiming in a pre-Superbowl TV interview that the hikes were a "portrait of the future if we don't do something now."

Health and Human Services Secretary Kathleen Sebelius quickly piled on by ordering a federal inquiry, claiming a company that made "$2.7 billion in the last quarter of 2009" could not "justify massive increases." Senate Majority Leader Harry Reid ripped WellPoint and other "greedy insurance companies that care more about profits than people." And right on cue, House baron Henry Waxman scheduled a hearing, where he will not blow kisses.

[kingu]

Profits that go to shareholders, which many of whom are the same people who are so blustering about saying how evil WellPoint is.

WellPoint only raised rates up to 40% - what about Obama’s debt frenzy? Is raising the entire national debt by 25% that less scary? Sometime, that money needs to be paid back. My guess is that Obama’s greatest anger is the raise in rates cuts that much more out of any ‘national healthcare plan’, as more union members will be outside the taxable bracket, due to the idiotic appeasement deal he made.

[Mjaye]

I’m suspicious of this fortuitous rate increase, the timing is amazing. Not sure what the angle is, but it’s just playing into Obama’s hand.

[wordsofearnest]

Can you say “adverse selection” ? I knew you could.