Record Profits Haven't Stopped Premium Hikes

Although insurance companies have seen three straight years of record profits, they continue pushing for higher premiums that they say will protect against any sudden increase in demand or cost of care, reports the New York Times.

The gains reflect cost-conscious patients who are delaying medical care, a boost in investment income and lower administrative spending, according to the Boston Globe. UnitedHealth, for example, told analysts that so far this year insured hospital stays actually decreased in some instances. In reporting its earnings, Cigna talked about the "low level" of medical use.

Almost all double-digit premium increases charged to employers in recent years have been passed on to their workers through higher deductibles and copayments, forcing many to postpone medical care such as elective procedures and imaging tests, notes the Globe. "There's been a cutback in [healthcare] utilization, and the insurers have benefited," said Stuart Altman, national health policy professor at Brandeis University.