Got Health Insurance? Pray You Won't Get "Purged" - Wendell Potter

[Donnachaidh]

http://www.michaelmoore.com/words/mike-friends-blog/got-health-insurance

You might not realize it, but this is National Small Business Week. I'm betting many small business owners aren't aware of it, either. Perhaps that's because most small business owners are far more likely to be worrying about whether they'll be able to offer health insurance to their employees for another year.

Or is this the year they join the ever-growing list of small businesses that have been "purged" by their insurance carrier?

For several years now, insurance companies have been "purging" small business accounts they no longer consider profitable enough or that their underwriters believe pose too much risk. I became familiar with "purging" (yes, that's the actual word insurance executives use internally) toward the end of my career as an industry PR man.

Virtually unknown outside of a few executive suites until I disclosed it in testimony before the Senate Commerce, Science and Transportation Committee in June 2009, the practice is most prevalent at the big for-profit insurance companies -- the ones that are under the gun to meet investors' profit expectations every three months. Along with "rescinding" (cancelling) the policies of individuals who become seriously ill, purging small businesses that employ workers who get sick is a tried-and-true way of meeting Wall Street's expectations.

Much more at the link --

[Fumesucker]

1. K&R, thanks for posting..

[slipslidingaway]

2. knr ...

when can we have a national discussion of Medicare for All.

:(

The Missing Voices at the Healthcare Summit - John Nichols
http://journals.democraticunderground.com/slipslidingaway/292

[Juche]

3. The insurance industry death spiral continues

Sadly health reform saved their business model. But constant 20-30% annual premium increases only serve to make the healthy drop coverage altogether or switch to high deductible/lower premium plans while those with pre-existing conditions hang onto coverage. The end result is fewer healthy people paying premiums to subsidize the sick, and another round of 20-30% premium hikes.

With the mandate, the death spiral may be halted. That is one of the bad things about health reform, it saved the insurance industry from its own short sightedness by mandating private coverage.

I've heard of purging before too. Small company with 100 or so employees, then one develops cancer. Suddenly premiums go up 40%, and the employer can either drop coverage or fire the employee with cancer.