This really says all you need to know about what a scam the insurance industry has become in America:
Many nonprofit Blue Cross Blue Shield health insurers have amassed billions of dollars in extra cash in the last decade even as they hit their individual customers with double-digit premium rate hikes, a new study found.
Seven out of 10 nonprofit Blues plans held at least three times the amount that regulators require them to maintain for minimal solvency, according to a report from Consumers Union.
The independent group found that 10 Blues plans collectively held $9.1 billion in surplus funds in 2009, or about $855 per member per year. That’s up from $4.6 billion in 2001, or $395 per member per year.
The plans ranged from Arizona holding seven times the benchmark minimum reserve level set by the National Association of Insurance Commissioners, to Alabama, which had about two and a half times the level that would trigger regulatory monitoring.
Meanwhile, Blue Cross Blue Shield of Arizona raised premium rates for individual policyholders between 14% and 19% in 2007; 13% and 15% in 2008; and between 8% and 18% last year, the report found.
Nonprofit Blue Cross Blue Shield plans cover about 100 million people, or about one in three Americans with private health insurance.
I’ll never understand why we’re forced to pay for insurance for everything ranging from our healthcare to our cars, homes, etc. since insurance companies will hem and haw to never payout when you need them.