Posted by
Contrarian Guitarist on Monday, June 09, 2008 9:25:43 PM
With much fear and loathing I opened my annual package from Blue Shield. Usually contains a thick booklet of policy changes and a new fee (read: new higher fee) structure. Well the policy changes were there, but something was missing. Like rechecking a winning lottery ticket over and over (something that I understand requires the purchase of a lottery ticket) I literally reread my statement three times before I dared to believe my sizable family premium had been cut by 10%!!! No I hadn't gotten younger (though Mrs. Contrarian Guitarist looks younger than ever), we hadn't lost a kid, nothing had changed just our premium. I wasn't the only one, millions of Californians experienced the same thing.
What happened? Had costs gone down? Probably not. What happened is twofold. Blue Shield is non-profit, meaning it can't, ultimately make a profit. It can build assets to a point to cover future costs. But at some point if it is paying out less than it is taking in then it's either going to have to give rebates, cut premiums or even give a premium holiday. The second possible reason for the cut is to inspire a fuzzier, warmer feeling towards insurers and the candidates they prefer come November. Those would be candidates that are opposed to a single payer nationalized health care system.
I planned on voting for them anyway. But the extra jingle in my pocket is cool too.