LETTER TO THE EDITOR

In the latest BUSINESS WEEK (8/3/09/Arnst/22-23) note that health insurance companies  have little competition. The American Medical Association as well as the U.S. Government Accountability Office found that among some 1300 health insurance companies, in all 314 metropolitan markets, 94%  are dominated by one or two companies. Thus, they have most of the business. The rest of the companies get the scraps.

Without competition, prices usually go up. In the last 10 years, insurance premiums have increased 120%. 44% went to inflation, but adjusted wages grew only 29%. Thus insurance companies now have raised prices well over twice as much.

The scare talk and the rest that you will hear in the weeks ahead is to defend those kindly souls that run the companies with six and seven figure salaries. In Canada, 85% like their health care (MSNBC/6/22/ 09’ 5:00-6:00 CST.