Good thing there is no inflation, you know, except in every single thing every single American needs to buy to survive that is! The hits just keep coming for California, America’s very own Greece. Remember the article I posted a couple of days ago titled: Payday Loans in California: School Districts Owe $1 Billion on $100 Million Borrowed.
Now we find out from the LA Times:
Health insurer Blue Shield of California wants to raise rates as much as 20% for some individual policyholders, prompting calls for the nonprofit to use some of its record-high reserve of $3.9 billion to hold down premiums.
In filings with state regulators, Blue Shield is seeking an average rate increase of 12% for more than 300,000 customers, effective in March, with a maximum increase of 20%.
That should be a real boon for California’s economy. Meanwhile…
Some other states limit how much surplus can be held by nonprofit health plans. Other regulators press nonprofit insurers to return more money to consumers and the community overall since their stated mission is to serve the public good. Washington’s insurance commissioner has said the two big nonprofit Blue Cross and Blue Shield plans there hold enough surplus to allow a portion of it to be used to reduce rates.
Wait a minute. This is a “non-profit?” It is truly amazing that whenever I think this ghetto economy we have couldn’t be more screwed up, it immediately proves me wrong.
Full article here.