The New York Times is reporting that large U.S. health insurers are seeing record profits for the third year in a row, due in large part to Americans who are postponing or forgoing care.
As Americans remain wary of economic recovery, they have become more discerning about going to the doctor or scheduling needed health care.
“I am noticing my patients with insurance are more interested in costs,” said Dr. Jim King, a family practice physician in rural Tennessee. “Gas prices are going up, food prices are going up. They are deciding to put some of their health care off,” he said.
Despite the high earnings, insurers continue to defend premium increases, “even though their reserve coffers are flush with profits and shareholders have been rewarded with new dividends,” according to the Times.
Insurers price premiums much on what they anticipate to pay out in future claims and say they expect demand to increase later this year. “I think there’s a real concern about a bounce-back, a rebound, in utilization,” said Dr. Lonny Reisman, the chief medical officer for Aetna.
“Because they say they expect costs to rebound, insurers have not been shy about asking for higher rates,” according to the Times.
Other factors spurring Americans to put off care are increased deductibles and copayments and reduced benefits for employer-sponsored health insurance plans, which have been rising over the past several years.
Some experts surmise that companies are trying to raise premiums before health care reform regulations are enacted, while others maintain that costs will continue to rise, but that insurers are more accurately predicting costs and making room for profits, reports the Times.
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