How do health insurers continue to see huge profits during this crisis? “If medical claims start to rise uncontrollably,” @bobjherman reports, “they’ll increase everyone’s premiums next year.” Humana CEO Brian Kane put it more opaquely: “We would price for this for 2021.” (7/11)
They’re already prepping for big rate increases next year. California officials say they expect insurers to hike premiums up to 40% next year for plans in the state’s Obamacare exchange. Those getting coverage through employers should also brace for big premium hikes. (8/11)
In addition, Anthem’s CEO said his company expects to realize a “net saving” because hospitals are canceling non-emergency & elective procedures due to COVID-19. And we already know insurers are refusing to waive copays & deductibles for COVID-19 treatments. (9/11)
This is all music to investors’ ears, who are rushing to buy these stocks.
Source: Thread by @wendellpotter: As a former health insurance exec, I don’t think any story better illustrates my old industry’s racket than the one I’m about to tell you: R…