Health insurers are enjoying a third year of record profits as patients postpone or forego medical treatment, according to a New York Times report.
Commercial insurer UnitedHealth Group told analysts that insured hospital stays have decreased in some instances in 2010, and Cigna reported a "low level" of medical use.
Despite low levels of use, insurers continue to raise premiums, defending increases by citing an expected surge in demand once the recession ebbs. But physicians and other providers believe patients may stay budget-conscious even after the economy recovers, saying fewer patients are opting for expensive tests "just in case."
Patients may delay medical care even longer when faced with high deductibles and co-payments, according to the report. According to the Kaiser Family Foundation, about 10 percent of patients covered by their employer had a deductible of at least $2,000, compared with 5 percent of covered workers in 2008.
Insurers say they still expect higher demand for care in late 2011 and 2012 and, as a result, have been aggressive about asking for higher rates, according to the report. Some experts believe payors may be raising premiums to prepare for changes through healthcare reform in 2014 and 2015. These changes will require insurers to provide coverage to people regardless of whether they have a pre-existing condition, a requirement that may take a hefty financial toll on some companies.
Read the New York Times report on insurers.
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Commercial insurer UnitedHealth Group told analysts that insured hospital stays have decreased in some instances in 2010, and Cigna reported a "low level" of medical use.
Despite low levels of use, insurers continue to raise premiums, defending increases by citing an expected surge in demand once the recession ebbs. But physicians and other providers believe patients may stay budget-conscious even after the economy recovers, saying fewer patients are opting for expensive tests "just in case."
Patients may delay medical care even longer when faced with high deductibles and co-payments, according to the report. According to the Kaiser Family Foundation, about 10 percent of patients covered by their employer had a deductible of at least $2,000, compared with 5 percent of covered workers in 2008.
Insurers say they still expect higher demand for care in late 2011 and 2012 and, as a result, have been aggressive about asking for higher rates, according to the report. Some experts believe payors may be raising premiums to prepare for changes through healthcare reform in 2014 and 2015. These changes will require insurers to provide coverage to people regardless of whether they have a pre-existing condition, a requirement that may take a hefty financial toll on some companies.
Read the New York Times report on insurers.
Related Articles on Coding, Billing and Collections:
Surgery Center Coding Guidance: Spinal Instrumentation
5 Surgery Center Coding and Billing Tips
Medicare to Reimburse for Four New HCPCS Q Codes, Stop Paying for J Code