The cost of health insurance continues to rise in Utah in 2011

The cost of health insurance continues to rise in Utah. The rising health insurance costs are above the rate of inflation. However, the number of medical procedures that some health insurance providers cover has gone done. In addition, health insurance providers balance sheets are health as income from stocks and other investments they hold, has been going up.

What gives?

As reported in the Salt Lake Tribune, greater than 10% health insurance rate hikes have once again been the way of business for Utah’s private-sector health insurance providers. This includes for-profit and non-profit health insurance companies.

Many in Utah are at a loss as to why the health insurance premiums are rising so much, even as the health insurance providers have big reserves in their balance sheets and, in the case of four out of five of the state’s largest providers, post handsome profits.

“That lets the insurers claim that they must continue to raise rates and stash cash in anticipation of the day when they actually have to sell their product to people who need it, and not cancel their policies the day they actually get sick.”

Did health insurers in the state of Utah really say this, or did the Salt Lake Tribune take some journalist liberties? I wonder. What do you think? Leave a comment.

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