Can You Profit from Health Care? Part 2
May 21, 2008
A couple weeks ago WhatIf explored whether the U.S.’ largest industry – health care – is recession-proof. It seems health insurance companies’ profits are starting to slip. Rising health care costs means that insurers must pay out more to cover health services, which means they raise the price of their policies to recoup these costs. As a result, the number of employers purchasing insurance is decreasing.
Even so, the nation’s largest publicly-traded health plans say they will continue to raise premium prices and reduce provider payments in order to please Wall Street. “We will not sacrifice profitability for membership,” WellPoint President and CEO Angela Braly said recently.
Wal-Mart Health Plan: Always Low Prices?
November 21, 2007
Wal-Mart is the latest to join the ranks of the increasing number of employers who are switching to high-deductible health plans. The main benefit of these plans is the cost savings to the employer who can still attract talent with the promise of health coverage. Wal-Mart employees enjoy the elimination of expensive hospital deductibles and reduced monthly premiums - some as low as $5 a month - and $4 for generic prescriptions. But if a Wal-Mart worker finds herself with serious chronic health problems, she’s still looking at a deductible that may be as much as 10% of her annual income - before taxes. That’s assuming she’s not a new employee on the year-long waiting list for coverage.
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