Health Insurance Providers Taken To Task By Consumer Groups
In a report two consumer groups have revealed that the state’s leading insurance providers are covering less people while making record profits. In addition a smaller portion of their revenues are being spent on care. These two groups are The Washington Community Action Network and The Northwest Federation of Community Organizations.
Their report was based on an analysis of Premera Blue Cross, Blue Shield, Regence and Group Health Cooperative. In 2002 these companies were making a profit of less that $1 per member per month. In 2006 that figure stood at $18.23.
Net expenses of these companies increased just 16 percent and net income increased 23 percent in this time. Supluses in 2002 were $833 bn and in 2006 these were $2.2 bn. This report is criticised for not capturing the full picture. Projected health care costs did not rise as expected which resulted in an increase in surpluses and revenues.
According to Kriedler some increases in surplus was warranted but not this much. Meanwhile insurance companies said that the reports numbers were off mark. This was refuted by Julie Chinitz, report coauthor who said the numbers were verified by an outside expert.
