Sunday, February 14, 2010
A labor-backed healthcare reform group is accusing insurance companies of dumping millions of Americans from health plans in 2009 in order to raise their profits. Healthcare for America Now, an organization financed by unions, released a report stating that the nation’s five biggest health insurers posted a combined 56% gain in profits last year compared to 2008. The companies—Wellpoint, UnitedHealth, Cigna, Aetna and Humana—also were said to have ended coverage for 2.7 million Americans in 2009.
In terms of dollar amounts, the big five made $12.2 billion last year, which was $4.4 billion more than 2008, according to the report. Cigna reportedly enjoyed the largest profit increase (346%).
American’s Health Insurance Plans, a lobbying group for the industry, dismissed the report, saying profits went up in 2009 because of better conditions in the stock market relative to the previous year.
Wellpoint’s Anthem Blue Cross California has been in the news for its efforts to raise premiums on individuals by 39% this year. The attempt has drawn threats from state and federal officials to investigate the insurance company.
-Noel Brinkerhoff
Top Five Health Insurers Posted 56 Percent Profit Gains in 2009 (by John Byrne, Raw Story)
Report: Insurers Enjoy Record-Breaking Profits as They Cut 2.7 Million People from Their Rolls (The Now! Blog)
Health Insurers Break Profit Records as 2.7 Million Americans Lose Coverage (Health Care for America Now!) (pdf)
Reform Group Spotlights Insurance Industry Profits (by Maureen Groppe, Gannett News Service)
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