Although healthcare reform legislation passed slightly over a month ago, there have been relatively few changes in the status quo so far. For example, rates continue to rise.

A case in point of this phenomenon is Blue Cross Blue Shield. Up to 40,000 policyholders in New Mexico are facing an average premium increase of 21 percent. In fact, this is an improvement over the initial 24 percent increases approved last December.

Affordable health insurance reform plans to create an office that would be able to regulate health insurance rates, and deny those deemed “unconscionable”. However, it will take awhile to establish that department. Meanwhile, some state insurance departments have the power to deny rate increases. In most cases, they do not exercise that power, and rate increases are typically signed off on.

In this case, public comment was not allowed. Despite a public hearing being scheduled on the renegotiations, a back-room deal was struck at the last minute between Superintendent of Insurance Morris Chavez and the insurer. The state’s system is also controversial because the decision is left up to the appointed official (Chavez), without any say from the elected officials on the Public Regulation Commission.

Granted, not every price hike request for a health insurance plan is unfounded. Medical costs have kept increasing at several times inflation over the past few decades. Unfortunately, reform appears to do relatively little to curb those increases. Health insurance companies have no choice but to pass at least some of their costs onto individuals, families, and small groups. It is possible that Blue Cross Blue Shield has been losing money on at least a portion of their policies, although doctors are doubtful that there were double-digit cost increases in the past year.

However, the recession has resulted in the Federal Reserve cutting inflation rates to near zero. The prices of most products have dropped along with income, both state- and nationwide, yet New Mexico health insurance appears to be immune to those issues.

(Image: James Marvin Phelps under CC 3.0)

-
About the Author:
Yamileth Medina is an up and coming expert on Affordable Health Insurance and Healthcare Reform. She aims to help people realize that they can find a quality health insurance plan right now. Yamileth lives in Miami, FL.
Article Source