Lt. Governor Elizabeth Roberts and several small business owners held a news conference to criticize the double digit increases being sought by Blue Cross and United Healthcare.  Blue Cross is seeking increases of 13.9% for small businesses and 16.2% for large businesses.  United is seeking increases of  11.6% for small business and 13.2% for large businesses.  I can understand the companies requesting an increase, but the magnitude of the increase seems excessive, especially in light of this fact:


The reports indicate, among other things, that both Blue Cross and United spend more on administrative costs (between 4 and 5 percentage points) and less on actual medical payments (4 to 10 points) than industry averages.


     Before Blue Cross and United seek increased premiums from business owners and their employees, they should work on getting their own house in order.  Since their administrative costs are higher than average, it seems reasonable to think they could reduce costs, therefore reducing their need for such a large increase.  If they won't push through these changes themselves, the Insurance Commissioner should force their hand by refusing to allow such a large increase.