About My Health Careers Internship MedBlogs Contact us
Medindia LOGIN REGISTER
Advertisement

‘Non-profit’ Health Insurers in US Make Billions, Increase Premiums

by Lakshmi Gopal on February 10, 2012 at 2:19 AM
Font : A-A+

 ‘Non-profit’ Health Insurers in US Make Billions, Increase Premiums

Washington's three largest insurers — Premera Blue Cross, Regence BlueShield and Group Health Cooperative — are nonprofit health insurance companies. They've however, made $2.4 billion while handing out steep rate hikes to customers.

Most publicly traded companies that make profits, face demands by shareholders to share the gains as dividends. The abovesaid companies are not public and do not have shareholders.

Advertisement

State Insurance Commissioner Mike Kreidler said that he was asking legislators to empower him to take a nonprofit health insurer's surplus or profit into account before allowing it to increase rates.

The three companies have raised premiums steeply for individual and small-group policies, while collecting a tidy sum of money, said Kreidler.

The companies justify their surplus saying it is needed to protect them financially in the face of unexpected costs, particularly those that result from the federal health care overhaul, and to invest in new systems.

However, the insurers now have at least $1 billion more than they need to pay claims and meet contingencies, noted Kreidler.



Source: Medindia
Advertisement

Advertisement
News A-Z
A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
News Category
What's New on Medindia
Is COVID-19 Vaccination during Pregnancy Safe?
Sensory Processing Disorder (SPD)
View all

Medindia Newsletters Subscribe to our Free Newsletters!
Terms & Conditions and Privacy Policy.

More News on:
Critical Care Insurance Health Insurance - India 

Recommended Reading
Law Permits Unreasonable Health Insurance Rate Hike in Texas
Unreasonable and unquestioned increases in health insurance rates can happen in Texas under the ......
US Unveils New Rules to Help Citizens Find the Right Health Insurance Plan
The new government-approved format that health insurance companies must provide on their services .....
IRDA Proposes Health Insurance for HIV Infected People
If the Insurance Regulatory Development Authority (IRDA) has its way, then people infected with HIV ...
IRDA Health Insurance Forum to Assist All Stakeholders
The Insurance Regulatory and Development Authority (IRDA) has formed a Health Insurance Forum to ......
Critical Care Insurance
A critical illness policy is exactly what it says – it is used for when you are critically ill and y...
Health Insurance - India
Health insurance has emerged as one of the fastest growing segments in the non-life insurance indust...

Disclaimer - All information and content on this site are for information and educational purposes only. The information should not be used for either diagnosis or treatment or both for any health related problem or disease. Always seek the advice of a qualified physician for medical diagnosis and treatment. Full Disclaimer

© All Rights Reserved 1997 - 2021

This site uses cookies to deliver our services. By using our site, you acknowledge that you have read and understand our Cookie Policy, Privacy Policy, and our Terms of Use