Guest Post: Blue Shield Of California To Hike Insurance Rates Up To 20%

Tyler Durden's picture

Submitted by Mike Krieger of Liberty Blitzkrieg

Blue Shield Of California To Hike Insurance Rates Up To 20%

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.

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NoDebt's picture

If you think it's expensive now, just wait until it's free!

francis_sawyer's picture

Sounds more like "Red Shield" kind of usury to me...

Looney's picture

I was going to type “Berk” instead of “Bernanke”, but decided to look it up first. Guess what, ZeroBoys and ZeroGirlZ?

According to the Oxford English Dictionary, BERK has two peculiar connections:

“1930s: abbreviation of Berkeley or Berkshire Hunt, rhyming slang for 'cunt'.”  ;-)


TruthInSunshine's picture

This is much ado about nothing.

If you are worried about "spiking costs of living" you are doing it wrong; give up eating, the need for gasoline, electricity & other energy, stop consuming medical care & don't even think about tuition for a university degree, and buy lots of 156" 3D LED HDTVs and iGadgets, bitchez.

I'm eating an iPad Mini right now for dinner, and it's delicious.

kaiserhoff's picture

How is that hollandaise sauce app?  I've been meaning to try it.

I hate regulation, but how about this.  No one working for a NOT FOR PROFIT outfit gets paid more than $30,000 per year.  Watch the rats scramble.

knukles's picture

They need to increase rates... they gotta pay campaign contributions, too...


And that 30K cap applies to gubamint workers, too

icanhasbailout's picture

Let's run around and break all the windows in California and really pump that economy.

akak's picture

They tried that already, back in '92 after the Rodney King trial.

Funny, didn't seem to work too well.

willwork4food's picture

Yea, but the riots sure improved the MSN bottom lines!

mkkby's picture

Who knew that "sliding into the ocean" was really a metaphor for this economic suicide.

jumbo maverick's picture

Try this on for size. When obunghole got elected I wrote a letter to the CEO of the charity that I donate to, well used to donate to. Basically I let the charity know that from now on they don't get a cent from me because Washington dc is to reckless with their spending and too thuggish with their thievery.
So with self preservation in mind I gots to look out for me an mine first. It sucks and it's selfish but imagine the message sent if everyone just stopped donating to charity and letting the charitable organizations know why. Things could change?

Calculated_Risk's picture

I tell people I already donate to charity. With my 50%+ taxes, I donate to build new schools and infrastructure in

 Iraq, pay for free phones, pay for companies to buy votes... my charitable contribution list is endless, just ask "uncle" sam!

tango's picture

I just can't.  We personally support 3 orphans plus help returning vets.  Since the feds refuse to do simple things (like allowing vets to take over abandoned homes going to pot for cost) and wastes money that could properly be spent on kids who truly need it (vs Obamaphones), citizens are forced to step up to the plate. Cutting off the flow of taxes to the DC black hole is one thing.  Cutting off funding for kids and vets is another.

sharky2003's picture

I'd be interested in seeing your reaction at the kind of nursing care a salary of 30k gives you.

DaveyJones's picture

luckily, there are no jobs thus no need for a degree. Honest and consistent

jerry_theking_lawler's picture

what....not even for a media and social specialist...???

Antifaschistische's picture

Has ZH mentioned that THIS YEAR (2012) Health Care Contributions by employers will be included on your W2.  It's a meaningless figure at this point, because the Sheeple will just ooohhh and ahhh about that number.  Next up...Health Care Contributions included in your taxable income.  This year, is the dry run where the IRS stacks you up.  Soon, you get mowed down.

Mark Wilson's picture

We just had a meeting Wednesday at work about this. My employer is seriously considering just cutting us a check for what they would have sent the insurance company and letting us get our own insurance if we choose to do so. Small company, less than 40 employees. It costs our company over $17K per MONTH for employee health insurance. Un-fucking-believable.   

youngman's picture

You know a lot of people voted for Obama and the Health care plan...small business too...NOW they are going to find out the Utopia they thought they were getting will not will pu some out of business...but will they learn from their bad they won´t...they will still vote for the Socialists because to them it feels good...Kumbayah

DaveyJones's picture

it's a theytopia not a utopia or metopia

Chuck Walla's picture

It is amazing that people who think we cannot afford to pay for doctors, hospitals and medication somehow think that we can afford to pay for doctors, hospitals, medication and a government bureaucracy to administer it.


~ Thomas Sowell


AmCockerSpaniel's picture

And the GOP wants private insurance over SS?  It's better with a middle man taking his cut.

tango's picture

Considering SS is over $150B in the red this year alone, I wouldn't put too much trust in this boondoggle.  After all, in an astounding case of intellectual dishonesty, the government forces private firms to balance their books or face legal consequences, unlike themselves.  

J 457's picture

I received a letter from Anthem Blue Cross last week informing me of another increase effective Feb 2013.  This one for 24.6%.  This is the third such increase in three years, and according to Anthem all the result of Obamacare.  My premiums have increased 110%, and total out of pocket for health care 140% increase in last three years. I have myself, my wife, and two healthy kids under the policy.  All of us in good health.  Meanwhile, my wages have steadily declined since 2008. 

Stranded Observer's picture

I used to have Anthem.  Those cocksuckers nearly doubled my monthly payment over three years.  It reached the point where i had to drop it.  They priced me out.  And I never even used it one time.  It ended up being like 4500 bucks I flushed down the fucking toilet for nothing.  

I'd love to have that money back let me tell you.

monogratis's picture

My Anthem premiums also increased 24.6% starting Feb 2013.


However, they did cover me for a $35,000 dollar hospitalization and surgery that saved my life... and I only had to pay $2500.  So, as much as I hate these bastards, not having health insurance would have been worse.  

Consider yourself lucky you didn't have any hospitalization Stranded Observer.

Stranded Observer's picture

I do consider myself lucky that I have remained in relatively good health and have not been a victim to any unlucky accidents.  But in regards to the health insurance, as much as it was raised, I simply could not afford it any longer.  And I don't own any frivolous iCrap either.  I'm fairly frugal.  If something happens to me, which happened to you (and I am most certainly glad it worked out okay for you), they will just have to let me die.  Which is okay too I suppose.  On a long enough timeline.  Its probably my fault I didn't learn to make enough money or be heartless enough to be a greedy banker.  

Atomizer's picture

20% increase, where do I sign up? I need to redistribute my income to help others. Grandpa Buffet told me so.

Penn & Teller: Bullshit! Explain Wealth Redistribution


Hobbleknee's picture

Exactly.  70% of my income goes to "free" health care in Sweden.

monogratis's picture

But your wages are much higher.

flattrader's picture

>>>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.<<<

The Blues operate under a special charter.  At some point in time, they stopped operating for the benefit of the insured and began operating for the benefit of the highly paid quasi-corporate administrative pigs who run the Blues.  I know an accountant who worked for one of the state Blues and she was appalled.

Non-profit cooperatives are a better model.  Many still operate as true cooperatives in the upper Midwest MN WI IA because their state laws allow it.

>>>New Generation Health Cooperatives

These relatively new health cooperatives are a build-out from a co-op business model firmly anchored in Minnesota and North Dakota but are now in vogue throughout the agricultural Midwest.

In these co-ops, various groups of people such as farmers, steelworkers and small business owners voluntarily band together to form a pool of members that can purchase health care insurance and services with more market strength than members' trying to purchase health coverage by themselves.

Wisconsin leads the nation in these small health care purchasing co-ops, inspired by a 2003 Wisconsin law that should be replicated by Minnesota and other states. Oemichen said there are currently four small business co-ops, two primarily urban and two primarily rural; one steelworkers union co-op; another (ironically) for health care professionals seeking better, more cost-effective insurance; insurance pools for farmers, and two school district co-ops. Four more NGC-Health co-ops are under development at the present time in Wisconsin that will make 14 such enterprises.

The benefits so far have been in tempering costs and expanding coverage to hard-to-insure members, Oemichen said. The NGC-Health co-ops have had an impact in lowering and "plateau-ing" premiums, he said, "and they have improved benefits offered by competitors. In this case, they do bring competition to the market."<<<

That model may soon re-emerge due to changes in Federal law.

Chupacabra-322's picture

We, in turn, are watching him very closely and find his narcissistic and reprobate ways repugnant to everything this country has and should stand for. He does not intimidate me one single bit. He lies like the devil. He has the worst domestic and foreign war policies (murdering innocent people weekly) of any President ever to occupy the Office. Obama throws million dollar parties while the nation is imperiled with financial and economic problems that were Globalist engineered.

He is so corrupt any country with balls would have screamed for his impeachment and sent him packing before the fixed election. This loser wants to mandate ObamaCare and 125 mandatory vaccines on people. He let Big Pharma and the Health Care Industry write the bill. Dr. Blaylock is right on the money. He wants to destroy what is remaining of private care and socialize and mandate everything. What with be next year’s New Year’s Eve Present, the NDAA Part Deux, The Final Solution? Or will it be that everyone will be forced to wear RFID tracking bracelets? I know pure deception and evil when I see it and so do many outstanding members of the military.

Simple Health Secrets the Globalists Don’t Want You to Know: Full HD Special Report

Dr. Russell Blaylock.

economics9698's picture

Damn doc that was really deep, here in the intellectual gutter we just refer to him as the NWA.


TruthInSunshine's picture

The shit storm has only begun. It's truly amazing at how much velocity the deterioration is going to gain. The Sheeple will be shell shocked within a year, even the most formerly comfortably numb.

Obamacare taxes/fines are also going to be a nasty, nasty surprise for  many. They have no idea how nasty b/c they really haven't been paying attention. Hell, the PREMIUMS and co-pays on that "free" Obamacare ARE GOING TO BE MORE than what they're currently paying for private insurance premiums and co-pays, and they WON'T BE ABLE TO OBTAIN that private insurance once Obamacare kicks in fully (employers are going to drop insurance benefits left and right, however they do it):


"If you think health care is expensive now, just wait until it's free." 

-- P.J. O'Rourke

Keep in mind that these are not these are not the estimates of some anti-Obama group, but of The Kaiser Family Foundation, which describes itself as follows:

A leader in health policy analysis, health journalism and communication, the Kaiser Family Foundation is dedicated to filling the need for trusted, independent information on the major health issues facing our nation and its people.  Kaiser is a non-profit, private operating foundation focusing on the major health care issues facing the U.S., as well as the U.S. role in global health policy.  Unlike grant-making foundations, Kaiser develops and runs its own research and communications programs, sometimes in partnership with other non-profit research organizations or major media companies.


We serve as a non-partisan source of facts, information, and analysis for policymakers, the media, the health care community, and the public. Our product is information, always provided free of charge — from the most sophisticated policy research, to basic facts and numbers, to information young people can use to improve their health or elderly people can use to understand their Medicare benefits.


The Kaiser Family Foundation is not associated with Kaiser Permanente or Kaiser Industries.

Unaffordable Cost Seen for Some Under Affordable Care Act

...The landmark health-care law, which survived the threats of repeal and a Supreme Court review, now confronts another hurdle: living up to expectations. As the administration spells out the details, many uninsured will be surprised at how much they will have to pay. It may involve “very substantial amounts,” and “there still will be a significant number of people who can’t afford health coverage,” said Ron Pollack, head of Families USA, a consumer group that backs the law.


A family of four earning $75,000 will pay $7,125 in annual premiums and as much as $8,333 in co-pays and deductibles, according to a preliminary estimate by the Kaiser Family Foundation. A single 40-year-old earning $30,000 will pay $2,509 in premiums and as much as $3,125 in cost sharing. For a 60- year-old making $40,000, the amount will be $3,800 in premiums and up to $4,167 in out-of-pocket costs, according to Kaiser.

Do you see? All those Everest, & University of Phoenixicans, who are extended-extended-unemployed or making minimum wage will be covered, families will catch that much needed "break," and seniors will rejoice! That family of 4 pulling down 75k will be thrilled to pay 15 1/2 k a year (or 20% of their total income). Those MANDATORY premiums and co-pays are only equal to an approximate 212% of most peoples' net-negative savings/extra cash!!! Wait until companies use the most ingenious methods to drop people from private or privately administered insurance onto the O-care dole.

BraveSirRobin's picture

My employer has a Cadillac plan. We have been told our benefits will be reduced to conform to the ACA requirements to avoid a highly punitive tax on such plans. We were proud of our benefits package and used it as a recruitment and incentive package, but cannot afford it under the ACA. Now we cannot compete on that basis with our competitors for high quality, and in our case, usually highly experienced and more senior personnel. In addition, we had an medical plan opt out provision which employees could use if they had alternate coverage. In return, we paid either increased wages or gave more paid vacation. Our interpretation of the ACA led us to drop the opt out provision and force everyone onto our plan, again, leading to a less flexible compensation system we also used to recruite and retain superior talent.

As a result, we have employees actively considering going into a 1099 status to recoup lost benefits. I guess if these guys make the move, they will probably be counted as new jobs created.

overmedicatedundersexed's picture

robin, much like your co, mine just had meetings on benefits Due to O bum a care:

we will be cutting hours for our student workers to keep them from working more than 30 hours in any pay period, if they do we have to offer full benefits per ACA..these kids need every cent and beg for more hours now, now they pay for voting this turd in.

Our HSA will be stopped per ACA d/t high compensation issues conflict with the new regs

looked at 1099 our high paid staff, but in Maryland if you have 1099 for what the state claims are full time workers they must be paid as full time staff and cannot be paid on 1099 self employed status..go figure

our ins costs went up 25% or over $1000/month per person

this is going to hit very hard folks who support ACA will pay with the rest of us Tax units.

sick of health laws in USSA. and no ins coverage for that..

tango's picture

This is the PERFECT example of how our government treats producers.  The old norm of mostly producers with few takers has reversed and producers find themselves paying more and more (for the common good, of course). As they are squeezed tighter, spending will drop and/or they'll go deeper into debt.  It's so...effing clear.  

The alleged purpose of Obamacare was lower costs (lol) but the real purpose was "federalizing" insurance - the last industry regulated by the state. I've consulted for insurance companies and they are slicing personnel fast.  Why have salesmen when your client is the fed?  Why keep all those who used to check our prospective clients since pre-existing conditions are gone. And with subsidies from the feds, anyone can get insurance (as long as they're poor).  

LongSoupLine's picture

I'm sure that $3.9B was all put into aapl by some "real smart people". With that, they truly are a

Dr. Engali's picture

Shit ours is going up 22% this year after a 15% increase last year. To top it off I will turn 50 so I'll get another bump mid year. I live a heathy lifestyle and I've never made a claim. We carry a high deductable health savings plan, if I wasn't a husband and father I would drop it.

trollin4sukrz's picture

Might as well drop it.. doctors are dangerous and hospitals are a great place to get sick.. 

akak's picture

That is the very first comment you have made here that I neither downvoted nor wanted to.

trollin4sukrz's picture

Do I know you? WTF you doing talking to me?

NoDebt's picture

It's OK, akak, I took care of it for ya.


smiler03's picture

Oh woopee.. what a wonderful man you are. Supporting your fellow brainless contributor. He's probably very grateful, he is after all, a moron too.


Are you from Texas?

Jumping the shark, this gets worse day by day.

akak's picture

(Must have been a fluke.)

francis_sawyer's picture

Sharia Law considers insurance a form of USURY...


It was when I understood that, (& dwelled upon it), the perceptions of francis_sawyer changed on a myriad of things [ESPECIALLY ~ towards the bloated & exaggeratedly adversaries of such thought]... That's not a broadbrush endorsement... Instead ~ Just sayin'...

mess nonster's picture

Sharia law also says that if you dont use something, after seven years someone else can use it.

The reason Jews aren't Muslims is, all these laws against usury and hoarding cramp their style.