As the five largest insurance companies in America (Wellpoint, United health, Cigna, Aetna, Humana) posted profits of about 56% - Anthem Blue Cross of California (A subsidiary of Wellpoint) is set to raise it's rates by 39%.
All this from a profitable company with more than 700 violations of the state's laws governing insurance companies.
The insurance behemoth cites 'investment losses' as the reasoning behind such practices.
But when did a company's profitability become so entangled in it's investment portfolio and not it's product?
IMO - THIS is what's wrong with our current financial system.
Most companies rely on their investments in Wall St. more than their own company's performance.
Most companies have become vehicles to raise capital through their pension plans and their employees 401k programs.
Most companies are so beholden on profits by wise stock trades while not enough focus on their core reason of being.
Most companies believed the hype of there being a bigger sucker to purchase their overvalued stocks.
If we wish to reform health care - first we must transform the banking/investment system back into a service driven industry and away from that of a profit driven industry.
That is a real problem when profit and service are intertwined. The truth is that our whole medical system ought not be profit driven, otherwise these problems will always be with us!
ReplyDeleteThe system is too big and too profitable. BrObama can talk all he wants but no true reform is going to happen. BrObama is not going to unseat a whole industry making billions being the Blood Suckers of the nation.
ReplyDeleteEveryone in CA can switch to Kaiser Permanente as they aren't raising rates.
Amen to that! thats actually how I lost my job in a fortune 500. Got the award for top high margin seller in the country, stock drops the next week, and there is the door.
ReplyDeleteI don't miss it.
My wife has worked for an insurance company for the last 15 years and it's always been my opinion that insurance is a racket. It's just slightly better than the mob. When you need insurance or use it regularly they will drop you like an bald headed stepchild or at least attempt to raise your rates. Why is it than when we actually use it for what it's for, they want to do all they can to stop us from doing so. We pay premiums month in and month out for decades; but as soon as we need it.......
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