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Media Release |
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| For Immediate Release | Contact | Phone |
| Friday, June 19, 2009 | James Woodson | 732-246-4772 x26 |
| Eve Weissman | 732-246-4772 |
Health Insurance Company Mergers Cause Higher Premiums for New Jersey Residents
Health Care for America Now Report Shows New Jersey Health Insurance Companies Use Near-Monopolies to Set Prices, Advocates Call for Public Health Insurance Plan to Curb Costs
Highland Park, NJ — Today, Friday, June 19, 2009 the NJ Health Care for America Now (HCAN) Campaign released a new report during a Tele Press Conference titled "New Jersey Health-Plan Premiums Soar As Insurers Face Less Competition" (full text here) by the Institute for America's Future showing that consolidation in the private health insurance market is creating skyrocketing premiums for both patients and employers. In New Jersey, the state and many metropolitan areas are considered "highly concentrated" under U.S. Department of Justice guidelines. This kind of consolidation means that an insurer can, without fear of consequences, raise premiums and/or reduce the variety of plans or quality of services offered to customers.
NJ Health Care for America Now partners Eve Weissman, Health Care Campaign Coordinator for NJ Citizen Action, Marcia Marley, President of BlueWave NJ, and Dudley Burge, Staff Representative for Communication Workers of America Local 1032 were joined on the call by Anita Thomas, Spokesperson for the NJ Main Street Alliance and owner of AM Thomas & Associates, LLC and Alex Lawson, Health Care Researcher for the Institute for America's Future and author of the Report.
The Report shows health insurance premiums for New Jersey working families have increased 71 percent from 2000 to 2007. At the same time, the median earnings of New Jersey workers increased 15 percent from $31,923 to $36,700. That means health insurance premiums for New Jersey working families have risen 4.7 times faster than wages.
"When just a couple of companies hold a near-monopoly, they not only set the prices, but they also make the rules and call the shots," said Weissman. "Private health insurance companies have proven year after year they'll do whatever they want when left to their own devices. It's time for real comprehensive reform that includes regulation and the choice of a public health insurance plan so we are no longer at the mercy of the private health insurers in New Jersey."
The American Medical Association reports that the health insurance marketplace is dangerously concentrated with 94 percent of local markets in the United States currently considered highly concentrated. And contrary to what the health insurance industry claims, these mergers have undermined market efficiency. Premiums nationwide have gone up an average of more than 87 percent over the past six years.
"There is no real choice or competition in the private health insurance market, and only by giving everyone the option of a public health insurance plan will we guarantee quality, affordable health care we all can count on this year," said Marley. "A public health insurance option will force private health insurance companies to control cost, guarantee quality, stop hiding what they will and won't cover, and put people's health before corporate profits."
"As the sole-proprietor of a consulting firm and the Executive Director of the Carolyn Dorfman Dance Company, I can tell you that there are not affordable, good quality health care options out there for self-employed people or small companies. That is why I support the choice of a public health insurance option. Not only will it give us a real choice in health coverage, but it will force the private insurance industry to compete for my business," said Thomas.
Highlights from the Report regarding New Jersey's health insurance industry:
- Horizon Blue Cross and Blue Shield, New Jersey's largest health insurer, controls 43 percent of the state market
- Local markets in New Jersey are more concentrated; in Ocean City, Horizon Blue Cross and Blue Shield and Aetna Inc. together hold 74 percent of the market
- For family health coverage in New Jersey from 2000 to 2007, the average annual combined premium for employers and employees rose from $7,592 to $12,979
- For family health coverage in New Jersey during that time, the average employer's portion of annual premiums rose 64 percent, while the average worker's share grew by 97 percent
Click here for the full report.
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Health Care for America Now — the nation's largest health care campaign — is made up of more than 1,000 organizations representing more than 30 million people nationwide. President Obama and more than 190 Members of Congress support HCAN's principles for health care reform. All across the country, HCAN supporters are organized and mobilized to stress the urgent need for health care reform in 2009 — reform that finally puts our health care needs before insurance company profits.
NJ Health Care for America Now Campaign Partners: 1199 SEIU Health Care Workers East, AFSCME Council 1, Alliance for Disabled in Action, Inc., BlueWave NJ, CWA District One, CWA Local 1032, Grassroots4Change, Family Voices, Garden State Equality, Health Care for All - NJ, Hispanic Directors Association of NJ, Lutheran Office of Governmental Ministries , New Jersey Citizen Action, New Labor, NEXT STEP, North Jersey Grassroots, South Jersey Grassroots, Women's Opportunity Center, Planned Parenthood Affiliates NJ, Statewide Parent Advocacy Network (SPAN), NJ Region of the Workmen's Circle/Arbeter Ring, New Jersey Education Association, Health Professional and Allied Employees (HPAE), NJCA Education Fund, National Association of Social Workers, New Jersey State AFL-CIO, New Jersey Partnership for Working Families, Democracia Ahora NJ, NJ West Hudson Valley Council Union for Reform Judaism.
