Bleak Economy Pushing Health Insurers to Raise Rates, Analysts Say

Good news!

Health insurers lately seem more afraid of Wall Street than of Washington.

The nation’s insurers have come under sharp attack by the Obama administration for seeking seemingly staggering rate increases on policies they sell to individuals.

The health and human services secretary, Kathleen Sebelius, recently pounced on WellPoint’s Anthem Blue Cross unit for wanting to raise premiums as much as 39 percent in California, and on Thursday she issued a scathing report detailing double-digit increases sought by other insurers last year and so far this year.

Angela F. Braly, WellPoint’s chief executive, was forced to cancel an investor presentation to prepare for the grilling she is likely to receive before Congress next week about the insurer’s rate increases.

But as bad as it may play politically, for insurers like WellPoint, the challenging business environment may leave them little choice but to raise prices if they want to protect profits, analysts and some health economists say.

A huge percentage of sick care costs are attributable to the chronic care of people who develop diseases of choice, i.e., the fatsos with cardiovascular disease, Type 2 diabetes, hypertension, etc.

Make them pay more.

And more. And more.

Until they cannot purchase the Calories needed to stay fat.

Then watch real sick care reform happen.