Insurers Still Spreading Falsehoods To Protect Their Bottom Line

Insurers Still Spreading Falsehoods To Protect Their Bottom Line

For the better part of a year, BIO has been on a mission to shine a light on the insurance industry and what they and their allies do to restrict patient access to innovative breakthroughs.

Apparently, we’re not the only ones who’ve caught on to the falsehoods spread by insurers to protect their bottom line.

Kaiser Health News’ Chad Terhune says Consumers Union has taken aim at two California Blue Cross Blue Shield insurers who are attempting “to artificially inflate their premiums for individual coverage under the Affordable Care Act.”

The report says state regulators are pressing the insurers to justify rate increases close to 20 percent higher than in previous years.

A Consumers Union representative warned against “exploitation [of drug costs] by health plans” searching for a scapegoat to blame their higher premiums on:

“‘The cost of prescription drugs is an issue,’ said Dena Mendelsohn, a staff attorney at Consumers Union in San Francisco. ‘But pharmaceutical expenses may be the factor most open to exploitation by health plans searching for a Trojan horse with which to usher in excessively priced insurance rates.’”

This isn’t news to anyone that follows our Value Campaign closely. A few weeks ago, Avalere Health published a study that dispelled the pervasive insurance industry myth that prescription drug costs are the reason for premium hikes. The report showed that, in fact, prescription drugs are not major drivers of insurance premium increases. PwC recently even called concerns over prescription drugs affecting overall healthcare spending “false alarms.”

BIO’s goal is to get all stakeholders together to reform our broken healthcare system. However, we’re also going to continue to hold insurers accountable for their actions. Head over to our new website, un-surance.com, to learn more.

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