Fair. Balanced. American.

Monday, March 08, 2010

Who was that populist politician?!

His name is Barack Obama. He's President of the United States.
"These insurance companies have made a calculation," Obama told the crowd at Arcadia University. "They're okay with people being priced out of health insurance because they'll still make more by raising premiums on the customers they keep."

Some have defended the recent moves of insurance companies like Anthem Blue Cross in California, who are attempting to raise rates on some policy holders by over %30, saying that there's no reason for insurers not to make a profit in every sector of their business. However, says Obama, it's just a matter of time until the average person starts feeling the water boiling around them.

"Every year, they raise premiums higher and higher... They will keep on doing this for as long as they can get away with it. This is no secret," he explained. "They're telling their investors this: 'We are in the money. We are going to keep on making big profits even though a lot of folks are going to be put under hardship.'"

Obama recounted a recent conference call organized by Goldman Sachs during which an insurance broker said insurance companies were better off raising rates on existing customers and losing customers than expanding their business with new customers.
Shades of the legendary Harry S. Truman. A much wimpier version, but still.

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