Some of the nation’s largest health insurance companies are warning investors that they’ll raise insurance premiums by as much as 116 percent next year, as the coverage expansion provisions in the Affordable Care Act go into effect and millions of uninsured Americans begin purchasing coverage.
The threats of premium increases come as the industry is experiencing record profits and are part of a well-coordinated publicity campaign to alarm Americans about the cost of coverage, while downplaying mechanisms in the law that will cushion them from rate shock. The effort comes as insurers seek more favorable regulatory changes that would, in part, allow companies to charge older people more for coverage.
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Insurers, meanwhile, are already seeing impressive profits. UnitedHealth, for instance, “had a particularly strong past year, with net income of $5.1 billion, up by 11% from the previous year” and Aetna is similarly beating revenue expectations. A July 2010 report from PricewaterhouseCoopers concluded that the law’s state-based health care exchanges provide private insurers with a lucrative new market in which they stand to gain up to $200 billion in revenue by 2019.
Health Insurers Threaten To Increase Premiums, Even As Profits Soar | ThinkProgress
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