Healthcare Nightmare?

The lead article in today’s New York Times, “Health Insurers Push Premiums Sharply Higher,” documents an effort by the healthcare industry to “get prepared” before President Obama’s Affordable Care Act is fully implemented in 2014.

Insurance companies have enjoyed three years of record profits and, according to consumer advocates, there is no reason to see the frequently double-digit percentage increase in premiums. However, after President Obama’s act goes into effect, companies will have to justify increases of more than 10 percent, plus the increased competition in itself will make it more difficult to raise rates.

Insurance companies do have some other mitigating circumstances. They must now cover children up to age 26 on their parents’ policies and offer certain preventative tests, such as mammograms, with no co-pay. But I do think they need to be reined in regarding these premiums that have doubled since 2001.

New York State already has legislation in place to do something about this for smaller businesses, and its Insurance Department should exercise its authority. Thanks to the sterling record of the Cuomo administration so far, I have little doubt that this will eventually occur.

As the saying goes on MSNBC, healthcare is a necessity for everyone, and it is unfair for corporate greed to play such a prominent role in this field. The New York Times does us a great service by leading with this article today.