Health insurers have managed to see a significant increase in profits, leaving lawmakers to call for a rebate to consumers. In 2010, health insurance companies saw profit increases of 41 percent from the year prior, showing that their continuous pleas for premium increases last year were not due to health care cost increases as stated.
$9.3 Billion in Profits So Far
The House of Representatives Ways and Means subcommittee that oversees health insurance companies was not please to find that 10 firms had brought in over $9.3 billion in profits so far in 2010 after reviewing their records.
Robert Zirkelbach, a spokesman for leading health insurance trade lobby, America’s Health Insurance Plans, spoke in defense of the profits. He stated Democrats are not focusing enough on the overall cost of health care. He explained to the Huffington Post that only one penny is given to profits while the remaining 99 cents goes toward costs. He said it’s time for lawmakers to focus on the 99 cents.
Unfortunately, his explanation doesn’t seem to defend insurers and instead shows that premiums were hiked enough to not only cover health costs but to help insurers pocket 41-percent more in profits than last year.
Call to Return Profits Via Premium Reductions
Rep. Pete Stark (D-Calif.), the outgoing chairman of the subcommittee, sent a letter on Wednesday to the heads of UnitedHealthcare, WellPoint, Aetna, Human, HealthSpring, Molina, Centene, HealthNet, AmeriGroup and Coventry, calling on them to return their profits.
The committee’s suggestion is that the companies return profits in the form of premium reductions to consumers. Whether this request will actually be satisfied is in question, however, since Stark and other committee members will be on their way out in January as a result of the Nov. 2 elections.
It seems that no matter how much the government works to control premiums of health insurers, they still manage to have their way. Hopefully, companies will follow Stark’s suggestion to offer premium reductions as repayment so that some Americans will have a shot at affordable coverage.
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