The health insurance rate hike spree, which most of the country’s health insurers are apparently on, has not only irked the affected customers, but has also led to a country-wide uproar, promoting federal investigations.
In a Thursday-released report, Health and Human Services Secretary Kathleen Sebelius highlighted the big rate hikes sought by insurers – led by a 39 percent hike announced by Anthem Blue Cross in California - in several states; and added that the move reflects the fact that the insurers are more focused on their own profits rather than the customers who go in for individual policies instead of group coverage.
Noting that along with California, the other states in which health insurers are seeking rate hikes include Oregon, Michigan and Connecticut, Sebelius said: “Millions of Americans are in the least secure marketplace. The one in which people have virtually no options. Their only choice is to pay increases or drop the coverage.”
The ‘undesirable’ alternatives that policyholders are looking at, in their attempt to reduce their rates, include – cancelling coverage; increasing deductibles up to $7,500 and paying more out of their pockets for basic services; avoiding hospitals due to fear of getting their medical history tainted.
The disquieting issue has also led President Obama to intensify his healthcare overhaul campaign in Washington, and has initiated Congress investigations into the problem in Sacramento and Washington.












