While there is no doubt that healthcare costs are escalating, there may be other reasons beyond pure inflation that is driving Anthem and other carriers to seek rate increases.
Even though entry level base commissions have been cut, insurance companies have not abandoned all monetary incentives for their outside sales representatives.
Significant in Aetna’s press about their purchase of Coventry is their statement, “Coventry will increase our presence in Government business.” Medicaid will mean big dollars to insurance companies under the ACA.
I have determined that the United States will constantly have retarded progress towards fixing our problems because many states are more interested in protecting their own turf than working as a unified body.
While we still have not found a cure for the virtually eradicated polio illness, the vaccine stands as a testament to the adage, “An ounce of prevention is worth a pound of cure.”
Even without any mandated plans under the ACA, businesses have found it necessary to add and drop plan offerings in an attempt to stem the escalating premium increases. What isn’t changing is that health insurance premiums will still be deducted pre-tax on payroll.