Thursday, June 09, 2011

Politically Correct and Pointless Insurance Company Tricks

So, Blue Shield of CA, who is rumored to be leaving the Individual Family Market, has announced two politically correct and pointless gestures:

  1. Refunding 30% of 1 Months premium IF you stick around between May and October 2011
  2. Loosening Small Group Requirements because Kaiser is kicking its Ass....
  3. Pledging a 2% profit margin, for a NOT-FOR-PROFIT!!!???!!!!
[Details at, yippee!!!]

Now WSJ realizes that after announcing the CEO salary of 4+ Million Dollars, a pointless gesture was needed.

So, let's do some math. You're premium is $100/month. 6 months x $100/month = $600. And, you'll get 30% of ONE month's premium = $30.

That's only 5% of $600. 5%? Really? I get a better deal at the coffee kiosk around the corner from my office.

The small group enrollment is bullshit too, since Kaiser is kicking their ass. ( is moving almost exclusively to Kaiser this year, based on premium rates, and out of pocket costs to the insured.)

And, finally, the 2% cap on "profits" for the not-for-profit. Huh? Your CEO made x4 more than others in comparable insurance companies. STFU.

Blue Shield of CA has suffered from the death spiral, no doubt. But, they should be buying medical service providers to control costs, not giving away silly small rebates, and paying execs...

How many kids could have been saved some pain with $3,000,000.00?

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