Health insurance companies stockpiled billions in profits while hiking premiums on customers #p2

(NaturalNews) Nonprofit health insurance companies have been stockpiling billions of dollars in surpluses while raising members' rates, according to an analysis conducted by the nonprofit Consumers Union.

"Consumers are struggling to afford health coverage," report author Sondra Roberto said. "Those funds could be used in some cases to mitigate these rate increases."

Insurers are legally required to retain a minimum surplus in order to cover medical bills in the event of a financial downturn. Because no maximum surplus is set, however, many insurers have taken to amassing massive stockpiles.

To assess the degree of this problem, Consumers Union analyzed the surpluses of nonprofit Blue Cross and Blue Shield plans, which cover one in three privately insured U.S. residents. Surpluses ranged between two and seven times the minimum required.

For example, Blue Cross Blue Shield of Arizona had a surplus of $717.1 million in 2009, seven times the required minimum, and raised member rates up to 18 percent in the same year. Regence Blue Cross Blue Shield of Oregon had a surplus of $565.2 million that year -- 3.6 times the minimum -- and raised rates an average of 25.3 percent. This year, rates went up another 16 percent.

rest at http://www.naturalnews.com/030300_health_insurance_premiums.html