A band of United States senators are calling for grilling of health insurance entities’ CEOs over the sweeping profits amid a massive wave of denials encountered by health care seekers. This comes in the wake of public outcry over the stark contrast between the soaring profits for these health insurance companies versus the increasing struggle faced by average Americans to access healthcare.
Over the past financial year, major health insurance entities reported record-breaking profits, with Anthem Inc., Cigna Corp., and UnitedHealth Group Inc., among the most thriving. These companies reported combined net earnings of $21.9 billion in 2020, a drastic rise from the preceding year. On the contrary, COVID-19 has worsened healthcare access for families around the country, with many battling premium hikes and coverage denial.
This disparity has irked a group of senators who now demand interrogations on the possible fortification of corporate revenues at the cost of consumer protection. The bipartisan group of senators, led by Sen. Elizabeth Warren, requested official hearings with the CEOs of Anthem, Centene, Cigna, CVS Health, Humana, and UnitedHealth Group, the six companies responsible for providing cover to over 130 million Americans. The senators have also brought forth formal proposals, outlining the need for stringent regulatory laws to shield consumers from such insidious trends within the industry.
“Our businesses should function in such a manner that they add value to consumers’ lives rather than feed off their vulnerabilities and manipulate them for profit,” says Warren. “I find it utterly disturbing that insurance companies continue to hike prices and deny claims while raking in billions in profit. That’s not just unethical; it’s un-American.”
A survey conducted by the Commonwealth Fund in 2020 revealed that about one in four Americans experienced a denial of coverage by an insurance carrier, with two-thirds reporting that it was for a service they believed to be covered. A different survey showed that the number of uninsured Americans has reached an all-time high under the pandemic, with approximately 15 million uninsured adults in July 2020, a number that further ballooned to 29.6 million by October 2020.
Reforms in the insurance industry are not a new initiative. The Affordable Care Act (ACA), passed in 2010, sought to improve health care quality and affordability, lower the uninsured rate by expanding public and private insurance, and reduce the costs of healthcare for individuals and the government. However, recent reports suggest that the ACA might be falling short in fully delivering its intended effect concerning affordability and coverage denial.
While insurance companies contend that worldwide pandemics tend to inflate healthcare costs, health policy experts disagree that the surge in profits tallies with the alleged increased expenditure. The Kaiser Family Foundation, a leading health policy research organization, reported an overall 7% decrease in healthcare spending in the first half of 2020.
“The data doesn’t support the narrative put forth by health insurers. If anything, it seems like their prosperity is coming at the expense of policyholders,” says Cynthia Cox, vice president at the Kaiser Family Foundation.
With the possibility of a congressional hearing looming, the general public and industry watchers eagerly await the next steps in what could mark a significant turning point in America’s health insurance landscape. As discussions continue in the halls of Congress, the stakes are indeed high, and the outcome could have a lasting impact on the health and finances of millions of Americans.
Original Source: https://hrexecutive.com/senators-push-to-grill-health-insurance-ceos-over-record-profits-and-denials/
