healthcare markets
Health benefits consuming more of total employee compensation, Northeast most expensive
Between March 2000 and 2010, health care benefits grew from 5.5% to 7.5% of total compensation costs nationally, according to the Bureau of Labor Statistics. In March 2010, health insurance averaged $2.08/hour worked in private industry — more than disability, retirement, Medicare, Social Security, unemployment insurance, workers’ compensation, life insurance or paid leave. Not surprisingly,…
Read MoreRisk adjusting rates webinar slides and video posted
you missed Wednesday’s webinar with Diane Laurent and David Williams of Milliman, the slides and video are now online. Diane and David described the methodologies to adjust rates based on each patient’s utilization history and diagnoses. Some models can predict future utilization and events, such as hospitalizations, for each patient providing an important tool to…
Read MoreGovernment is taking over health care
Sometime next year government will overtake all other payers and fund more than half of all US health care, according to actuaries at CMS. Last year health care consumed 17.3% of our economy, the largest one year climb since 1960. We spent $282 million per hour last year on health care. Just government’s share of…
Read MoreUnited Health Group profits up 30%
Rising unemployment, and consequent rising uninsurance, reduced United Health Group’s lucrative commercial enrollment by almost a million people compared to last year. Despite that, United posted rising profits for the third straight quarter. Raising premiums and a 12.5% increase in taxpayer-funded Medicare and Medicaid enrollment contributed to the profits. United Health Care (Americhoice) is one…
Read MoreThe upside of rising unemployment and rising health costs
An article in yesterday’s Wall Street Journal found the silver lining in our current economic crisis. As incomes for many dropped this year and health care costs for virtually everyone went up, more Americans will be able to qualify for the end of year tax deduction for medical expenses. Because the rules do not allow…
Read MoreInsurance Dept. hearing on United Healthcare buying HealthNet
Monday’s CT Insurance Dept. (CID) hearing on the acquisition of Health Net’s license by United Healthcare was fascinating. If you didn’t hear anything about it, you’re not alone. It was not well publicized, there was little time to respond, and the hearing was not held at the Legislative Office Building, but in a windowless room,…
Read MoreGAO report finds reduced competition in insurance markets is associated with higher premiums and profits
After pages of disclaimers and cautions that there is not enough good research on the issue, a recent GAO report finds evidence that there has been increasing concentration in health insurance markets in the US. Market share of the top five insurers rose from 43.2% in 1994 to 49.9% in 1997. The impact varied by…
Read MoreUnemployment up, but not for health care
Friday’s national unemployment numbers for May were up to 9.4% from 8.9% in April. Since December 2007 when this recession began, 7 million more Americans are unemployed. A study published in January by the Urban Institute estimated that if unemployment reaches 10% this year, 13.2 million Americans will lose employer-sponsored coverage, Medicaid and SCHIP will…
Read MoreStocks up, but health insurers down
While the stock market yesterday enjoyed its biggest gain in five years, based on relief from the Federal Reserve, health insurers’ stocks dropped after Wellpoint warned that the company expects less profit than originally anticipated for the first quarter and all through 2008. After the announcement, Wellpoint shares dropped by more than 28%. The company…
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