Consumers Put Off Needed Care While Health Insurance Companies Make Record Profits

May 24, 2011

Even during the worst economic downturn in a generation, health Insurance companies are enjoying a third straight year of record profits. For this, many of them are thanking the recession which has encouraged consumers to forgo care out of concern for out of pocket costs.

 “I am noticing my patients with insurance are more interested in costs,” said Dr. Jim King, a family practice physician in rural Tennessee. “Gas prices are going up, food prices are going up. They are deciding to put some of their health care off.”

Due to the economic slowdown, many employers have begun shifting costs to their employees in the form of high deductibles and other out of pocket costs. This has led to many patients avoiding treatment for their conditions.

Despite the record profits and fall in consumption of services, insurers across the country continue to ask for higher premiums. BlueCross/BlueShield in Oregon recently requested a 22% premium increase in policies it sells to individuals.

-- New York Times