Bait, Hook, Raise Insurance Rates 40%, then Kill (the Elderly, First)

May 17 (EIRNS) - Regence BlueShield on May 15 began notifying its individual-plan customers in Washington State that their premium rates are going up, starting in July, with an average increase of 19% - but, for the elderly, the increase will be 40%.

In a letter to state legislative leaders, Washington State Insurance Commissioner Mike Kreidler said: "I have serious concerns that consumers may have been whipsawed in an effort by Regence to increase market share." But the Seattle Times says that he is powerless under current law to stop the rate hike, which will force some to drop their insurance altogether.

In an e-mail, Don McCanne, the senior health policy fellow of the Physicians for a National Health Program, explained how the insurance "industry" runs the scam: The insurer holds premium rates down for a period to attract more customers, increasing its market share, diminishing its competition. Then the insurer raises premium rates sharply to recover deferred profits plus provide an additional generous profit margin for current insurance sales. Wall Street dignifies this process by calling it the insurance underwriting cycle, but it is nothing more than a devious bate-and-switch scheme.

"Those facing a 40% premium increase are not only aging, but many of them have developed significant medical problems. By making premiums unaffordable for this high-cost sector, many will have to drop their coverage. This advances Regence's business plan to selectively insure the healthy," McCanne wrote.

Regence's plies its trade in Idaho, Oregon, Utah, and Washington. Its website homepage reports, "Collectively, our four Plans serve nearly 3 million members with more than $6.5 billion in annual premiums and reserves of more than $1.1 billion. Financial stability ensures our members that we will be there when they need us most."