Saturday, February 20, 2010

Fox more concerned with optics of huge increases in health insurance costs than impact on consumers

California's Anthem Blue Cross would raise insurance premiums by a startling 39%, analysts considered its impact on consumers.

At Fox Business Channel, the hosts appeared to be solely concerned that it could boost support for health care reform.

On Monday Brad Fluegel, Vice President of Blue Cross's parent company Wellpoint, Inc., appeared on Fox with hosts Stu Varney and Charles Payne to discuss his subsidiary company's recent moves.

Fluegel downplayed the company's $2.7 billion profit in the final quarter of 2009 and insisted the premium jumps were in accordance with rising medical costs. He also lamented the "highly politicized debate" nationally on health care.

White House Health and Human Services Secretary Kathleen Sebelius pointed out that Blue Cross's rate increase is 15 times that of inflation.

The health care advocacy group HCAN alleged in a report this month that such rate hikes are designed to boost the profits of insurers rather than pay medical expenses.

The House Committee on Energy and Commerce chairman Rep. Henry Waxman called Blue Cross's decision "deeply troubling" and demanded to "know what possible justification there could be for increases of this magnitude."

Neither Fox host asked Fluegel about the forthcoming increased costs to consumers. They appeared more concerned that it could boost enthusiasm for insurance reform.

"You handed the politicians red meat at a time when health care is being discussed," Varney said. "You gave it to them... You couldn’t see this coming? I mean really, you couldn’t see this coming?"

Anthem Blue Cross spent nearly $9.5 million lobbying against health reforms; the annual salary for Anthem’s CEO tops $10 million.

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