The Obama Administration is investigating the large premium hikes instituted by Blue Cross here in California. The insurance company is raising premiums on its individual policy holders an average of 39%. Now everybody is now up in arms.
Of course the irony of this situation is that the health care reform bill being pushed by Congressional Democrats and the President requires that everybody in the country buy health insurance from one of these private insurance companies. When insurance companies are not allowed to raise premiums on the sick or deny coverage for those with preexisting conditions, you better believe everybody's premiums will rise. And there is no insurance regulation in the bill that would limit the amount of price inflation the companies can institute. No one envisions regulating insurance companies like electric utilities.
Ultimately the government will wind up paying so much money to subsidize the American public to help them buy insurance that the whole enterprise will collapse. Then people will realize that the single payer system is the only alternative to a for-profit insurance industry. The insurance companies will then be reduced to selling supplemental insurance policies, like they already do for Medicare recipients, which they do quite profitably.