Health Insurers Making Record Profits as Many Postpone Care

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Health Insurers Making Record Profits as Many Postpone Care

By REED ABELSON

The nation's major health insurers are barreling into a third year of record

profits, enriched in recent months by a lingering recessionary mind-set among

Americans who are postponing or forgoing medical care.

The UnitedHealth Group, one of the largest commercial insurers, told analysts

that so far this year, insured hospital stays actually decreased in some

instances. In reporting its earnings last week, Cigna, another insurer, talked

about the " low level " of medical use.

Yet the companies continue to press for higher premiums, even though their

reserve coffers are flush with profits and shareholders have been rewarded with

new dividends. Many defend proposed double-digit increases in the rates they

charge, citing a need for protection against any sudden uptick in demand once

people have more money to spend on their health, as well as the rising price of

care...

http://www.nytimes.com/2011/05/14/business/14health.html