Counterintuitive Headline of the Day
- Joshua M Brown
- February 19th, 2010
"Bleak Economy Pushing Health Insurers to Raise Rates, Analysts Say"
That gem of a headline appeared on the New York Times last night. Apparently, the dysfunctional health insurance industry didn't get the memo...
This morning we got the first drop in core CPI since 1982. Everything costs less than what it did last year, from clothing to groceries.
As it should in light of the fact that 18 out of 100 people are underemployed.
According to the article, WellPoint ($WLP) is looking to raise certain types of plans by 39%. Seriously.
These inherently evil companies need to cut their own costs (like salaries), not raise the price on consumers who were already struggling to pay health insurance premiums in boom times.
I can only hope that interstate competition is opened up soon; if these pigs truly want a "free market", let 'em fight it out like the rest of us. That's the only way we'll ever get rational pricing.
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The Reformed Broker is a blog about financial markets and the economy. Joshua Brown is a New York City-based investment advisor for high net worth individuals, charitable foundations, retirement plans and corporations... More.