Insights · October 1st, 2009
Recently my friend Mark Anderson was quoted as saying that rising health insurance costs were a key reason that General Motors faltered. This was my argument when I suggested to Business Week early this year that relieving business of the private insurance industry costs would be an innovation that would assist in getting beyond the recession.
Here is an example of what I am talking about. At Futurist.com we pay Regence Blue Shield of Washington for a small company policy that covers just two people. Today, I received my new annual rate beginning November 2009 – and for the same coverage that does not include dental or vision care the cost increase is 29%, up to a total of $1,880 a month. $22,500 a year to cover two people.
It is not clear how this is in any way sustainable, and we are like every small business in America. I presume the gambit by Regence is to encourage us to drop or reduce coverage. Hard to see how it could be anything else.
Health care insurance reform in the U.S. would be a good thing for the future.