CIGNA, the health insurance company, has launched an ad campaign for $25 million that is geared toward strengthening its business in the individual market. According to the Wall Street Journal, individual policies comprise only between 1 and 2 percent of CIGNA’s current revenue. The majority of the insurer’s profits are from insurance that is employer-based. However, as a result of the new healthcare reform laws, individual markets are about to become significantly more lucrative. In fact, the Congressional Budget Office (CBO) has projected that by the year 2019, there will…
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A news study shows the costs of health care are rising as well as uninsured rate
A new report from the Commonwealth Fund, a nonprofit organization championing a more efficient health care system, shows that as the costs of health insurance rise, the number of people with health insurance plummets. The report cites growing tensions within the economy as consumers struggle to cope with higher costs of living and widespread job loss. In 2010, the organization estimated that 29 million people did not have health insurance, a number that had been 16 million seven years before. Among those losing health insurance coverage are those with jobs.…
Read MoreLegislation to give California insurance regulators more power is pulled from the Legislature
For the past several months, California legislators have been toiling over a bill that would give the state’s insurance regulators expansive new powers. The bill would have expanded upon regulator’s authority and enabled them to reject or revive insurance rate proposals from the state’s insurance companies. The bill has generated a fair amount of opposition, especially from insurers who are loathe to see regulators wielding more authority. Now the future of the bill is uncertain, as its author, Assemblyman Mike Feuer of Los Angeles, pulls it from consideration. Feuer’s legislation…
Read MoreMichigan Supreme Court rules in favor of insurance company denying coverage for stem cell surgery
Stem cell research is a controversial issue. While the issue is primarily comprised of its uses in medicine, the controversy extends well into the insurance industry. As new methods of treatment emerge, insurance companies must weigh the risks involved with such treatments and what implications could be made to their policies. Most insurers cringe away from covering medical procedures that have a limited history of use, arguing that the risks involved with such things as stem cell surgeries are immeasurable. The fears insurers harbor over the issue may have been…
Read MoreResearchers find that U.S. insurers pay more for medical care than their counterparts in Canada
Health insurance rates are rising throughout the nation. Insurers are quick to justify these rate increases with the soaring costs of medical care and administration. While the nations insurance regulators are leery of these justifications, researchers at both Cornell University and the University of Toronto say that insurers claims may be accurate. According to a report released from the universities, health insurance administrative costs are almost four times higher in the U.S. than they are in Canada. The report finds that Doctors in the U.S. spend excessive amounts of money…
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