Blue Cross Rate Hikes (More Transparency Needed?)

This week’s question at the New Mexico Independent Forum centered around Blue Cross Blue Shield New Mexico and its recent efforts to raise rates on individual policies relatively dramatically (in excess of 20% this year). As a policyholder with Blue Cross, I am impacted directly by this, but unlike government from which we all should demand close to 100% transparency, I don’t think hearings are the best way to decide whether an insurance company can or should raise prices.

The real issue at hand here is the need for federal market-based health care reforms and some at the state level here in New Mexico as well. In a competitive, market-based health care market (like car insurance), there would be no need for an elaborate, inefficient, and costly hearing system. Unfortunately, that is not what we have and ObamaCare is not a step in the right direction.