ShareThisPush back on Tufts health insurance premium increases
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Just as an experiment I'll call Tufts Health Plan to push back on why our premiums for this year have jumped ~$100/mo, after ~$300/mo last year. Insane! Basically I'll ask how the !@#$ this makes sense, given that most peoples' incomes have dropped. Topics: Executive compensation, profits, # members, and hiring. |
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Success: Get some answers from them. |
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When I get answers or give up. I'll push as long as I'm pissed off or curious, basically. |
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By disconnecting my anger and instead being curious. How hard will it be to get ahold of someone who can answer me? How forthcoming will customer service be? How long will I have to wait? What kind of waiting music will they play. And especially: Will their answers surprise me. Going in my bias is: I assume they're basically greedy and gouging me - excessive corporate profits because they /can/. I'm quite willing to be proven wrong. I'll also enjoy the process by tracking it here, and maybe turning it into a mission on my blog. We'll see! |
Comments & Observations
Matthew Cornell OK, bringing you up to date: 2/24 I spoke w/Jessie in member services. He passed me on to sales, where I left word. They called back 2/25 but I missed them.
Today I called sales, got a recording, then tried the main member services number. I had to push about 3 times to connect to the CEO's admin assistant. (They want me to go through my insurance group, which sets the rates - reasonable.) The admin put me through to the VP of Communications, whom I left a voice mail for.
o Overall hold time so far: ~1 hour.
o Music: Good sound quality, inoffensive classical (Mozart).
In the meantime I'm waiting to hear back from the group insurance company (MBA) I have to go through as a self-employed person to get access to health insurance. One thing's for sure, the system is !@#$ed up.
Mar 01, 2010
Matthew Cornell Was called back by a MBA principal (they're 50 people), and by the VP of Communications, who I said I had to call back. She listed lots of factors, but it's really the "carrier" (Tufts) who's increasing premiums. Ready for this? The average rate increases is - tada! - 30% this year. And they went up a lot /last year/ too. !@#$ing incredible. Show me one company on the planet that's getting 30% more this year. I'm looking forward to hearing what they say.
Mar 01, 2010
Matthew Cornell Oh - Best I can tell, here's what James Roosevelt, Jr. (President and Chief Executive Officer) was paid ("excluding contributions to an executive savings plan"):
$1.3 million (2006)
$1.19 million (2007)
$1.06 million (2008)
Part of the problem: "The key metrics in the incentive plan are membership and net profit". Not customer satisfaction or - gasp - quality of care. This is why my nurse wife says that making money off of being sick is a Bad Idea. (Their motivation is to make money. They make money by minimizing paying out claims.)
I couldn't make much sense of this revolving door page: http://www.opensecrets.org/revolving/rev_summary.php?id=70830
From http://www.boston.com/business/healthcare/articles/2009/02/28/blue_cross_ceos_pay_rose_26/ :
Tufts Health Plan earned net income of $18.8 million in 2008 despite suffering investment losses of $6.2 million in 2008. In the fourth quarter alone, Tufts lost $27.3 million because of investment losses and an operating loss of $1.3 million. In 2007, Tufts posted net income of $110 million. Enrollment increased to 698,000 at year-end compared with 678,000 in the first quarter.
Mar 01, 2010
Matthew Cornell OK, I spoke today for an hour with Tuft's VP of Communications. She admits the situation stinks, and says they are efficient. They're increasing premiums so drastically because of skyrocketing medical costs like new technology and drug costs. (I didn't understand this - new computers cost less and are more powerful each year, right? Also, why would drugs they've produced for years cost more?) After all her arguments, something is still fishy. SOMEONE is making more money than ever.
I asked about why different groups get different rates (her premium for two people is ~$500/mo, whereas mine is ~$1,400 - basically a second mortgage) and her response was a) her employer chips in, and b) her employer can negotiate a better deal because it's large, i.e, has more buying power. Should this model apply to a basic need like health insurance? I don't believe so. On an idividual level, what is it about her, intrinsically, that makes her deserve a break on this? Nothing, I'd argue. Blah blah blah, basically the system is unfair, and tilted heavily in favor of corporations. Big suprise!
So: I'll finish the experiment. I learned:
o I can get through to upper levels with persistance, and that mentioning that I have an audience /probably/ made a difference. (Tip: Use the word "escalate.")
o The topic is complex, esp. in MA. But now I know a little more about it. I'm not sure how I'll use it.
o I used it as an excuse to make contact with my state senator and rep, which might allow me to get more active.
o I now know that what I can control is extremely limited, basically, I can choose from a fixed number of options that are much more expensive than what non-self-employed people get.
o I now know that the two largest group plan organizations in the state have nearly identical rates.
o The latter two are constraints, and constraints simplify decisions. Even if I don't like them.
This was a good experiment. It helped me manage anger and frustration I was experiencing, and I learned a good bit.
Mar 02, 2010