In Alabama, Lack Of Competition May Be Behind Insurance Premium Costs

 "I'm thinking, please God, let Obamacare fail."  These are the words of Mary Hardy who is self-employed and lives in Alexander City, Alabama.  She received a letter in early October informing her that her current plan with Blue Cross Blue Shield of Alabama would be cancelled.  The company did advise that the customer would have the option to enroll in new coverage.

The new coverage that Mary Hardy could get would cost her substantially more than what she was previously paying.  She and about 80,000 others were outraged.  They totally blamed this on the affordable Care Act.  

Others see insurance market dynamics as a big part of the problem. Because Blue Cross Blue Shield of Alabama covers about 90 percent of the Alabama individuals and families who buy policies directly, BlueCross faces little competition and few reasons to lower prices.

In the Huntsville area, where only BlueCross and Humana offer plans through the federal government's online exchange, the least expensive, medium-level "silver" policy for a 50-year-old costs $352 a month. A hundred miles north in Nashville, Tenn., where four insurers compete, the least expensive silver policy costs $253, or 28 percent less.

Kaiser Health News reviewed nine cancellation letters sent to largely healthy consumers from ages 22 to 63 across the state who buy health insurance directly from Alabama BlueCross. The company offered new plans at price increases ranging from 38 percent to 100 percent — before government subsidies are factored in.  Not everyone will qualify for subsides. 

"Those of us who were hoping this was going to be a good thing are now realizing we're going to be helping a few people, but we’re going to be hurting so many middle class families," she said. "We just never thought we would be dealing with this. It wasn't even on our radar."

 I’m sure that this is just one of the many stories concerning our new healthcare system.  I strongly believe that in any new thing there are bumps that will be smoothed out along the way.  Recognizing what the issues are concerning consumers `will help to put some things in place to regulate the cost of insurance from the providers to the consumer. 

It is still a very good feeling to know that babies and children, elderly men and women, people with disabilities, people with diseases that need help can now get medical attention.  So we have to pay dollars more, we give up the T-bone steak for chicken, the smart phones for a regular phone; we have still been fed, we continue to communicate, etc.

Let us be eager to help one another.  This new healthcare plan is new.  There is much to be worked out.  Let us have the same patience with this project as we would want someone to have with ours.