Comments on: Universal health care: Missing the true problem http://www.kevinmd.com/blog/2007/06/universal-health-care-missing-true.html Tue, 14 Feb 2012 19:56:00 +0000 hourly 1 By: N=1http://www.kevinmd.com/blog/2007/06/universal-health-care-missing-true.html#comment-75882 N=1 Wed, 06 Jun 2007 16:12:00 +0000 http://clients.emmense.com/kevinmd/2007/06/universal-health-care-missing-the-true-problem.html#comment-75882 ARGH! Typo correction: "The largest cause of escalating...."<br/><br/>(Sorry) ARGH! Typo correction: “The largest cause of escalating….”

(Sorry)

]]> By: N=1http://www.kevinmd.com/blog/2007/06/universal-health-care-missing-true.html#comment-75881 N=1 Wed, 06 Jun 2007 16:11:00 +0000 http://clients.emmense.com/kevinmd/2007/06/universal-health-care-missing-the-true-problem.html#comment-75881 Yes and no. The largest casue of escapalating health care - RELATED costs is in administrative and insurance costs and fees, such as this one:<br/><br/>Los Angeles Times<br/>May 26, 2007<br/>WellPoint dividend is questioned<br/>By Lisa Girion<br/><br/>State regulators are investigating whether a $950-million dividend<br/>Blue Cross of California sent to its Indianapolis-based parent<br/>violates an agreement the companies made to limit such payments to<br/>keep premiums down and maintain the quality of healthcare benefits,<br/>officials said Friday.<br/><br/>Officials said the parent, healthcare giant WellPoint Inc., should<br/>have taken no more than $141 million out of California. They called<br/>the higher amount excessive, particularly as Blue Cross, which serves<br/>more than 7 million state residents, has continued to raise premiums.<br/><br/>The state Department of Managed Health Care also is considering<br/>expanding its probe to determine whether there are any other<br/>potential violations of the three-year agreement, part of a deal to<br/>win the agency's approval for a corporate marriage that created the<br/>nation's largest health benefits provider.<br/><br/>The merger came about when an Indianapolis-based company then known<br/>as Anthem Inc. purchased Thousand Oaks-based WellPoint, which used<br/>the Blue Cross license in California, and adopted its name.<br/><br/>Cindy Ehnes, director of the Department of Managed Health Care, said<br/>she was shocked to learn of the $950-million payday for WellPoint,<br/>whose total profit last year was $3.1 billion on $57 billion in revenue.<br/><br/>"We are concerned that it reflects a viewpoint of California being<br/>its own ATM machine, while, at the same time, Californians are<br/>struggling to get health insurance for their families," Ehnes said in<br/>an interview.<br/><br/>"Health insurance is a competitive industry that does not exhibit<br/>excessive profit margins," WellPoint spokeswoman Shannon Troughton said.<br/><br/>http://www.latimes.com/business/la-fi-<br/>wellpoint26may26,0,3060723.story?coll=la-home-business<br/><br/>The agreement (Undertakings):<br/>http://www.dmhc.ca.gov/library/reports/news/BCCunder112404.pdf Yes and no. The largest casue of escapalating health care – RELATED costs is in administrative and insurance costs and fees, such as this one:

Los Angeles Times
May 26, 2007
WellPoint dividend is questioned
By Lisa Girion

State regulators are investigating whether a $950-million dividend
Blue Cross of California sent to its Indianapolis-based parent
violates an agreement the companies made to limit such payments to
keep premiums down and maintain the quality of healthcare benefits,
officials said Friday.

Officials said the parent, healthcare giant WellPoint Inc., should
have taken no more than $141 million out of California. They called
the higher amount excessive, particularly as Blue Cross, which serves
more than 7 million state residents, has continued to raise premiums.

The state Department of Managed Health Care also is considering
expanding its probe to determine whether there are any other
potential violations of the three-year agreement, part of a deal to
win the agency’s approval for a corporate marriage that created the
nation’s largest health benefits provider.

The merger came about when an Indianapolis-based company then known
as Anthem Inc. purchased Thousand Oaks-based WellPoint, which used
the Blue Cross license in California, and adopted its name.

Cindy Ehnes, director of the Department of Managed Health Care, said
she was shocked to learn of the $950-million payday for WellPoint,
whose total profit last year was $3.1 billion on $57 billion in revenue.

“We are concerned that it reflects a viewpoint of California being
its own ATM machine, while, at the same time, Californians are
struggling to get health insurance for their families,” Ehnes said in
an interview.

“Health insurance is a competitive industry that does not exhibit
excessive profit margins,” WellPoint spokeswoman Shannon Troughton said.

http://www.latimes.com/business/la-fi-
wellpoint26may26,0,3060723.story?coll=la-home-business

The agreement (Undertakings):
http://www.dmhc.ca.gov/library/reports/news/BCCunder112404.pdf

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