Welcome!

News Feed Item

HealthNet 2nd Quarter Profits Up 4 Times Last Year's Returns, Says Consumer Watchdog

Prop 45 Will Protect Overcharged Consumers From Paying for Massive Health Insurer Profits

SANTA MONICA, Calif., Aug. 11, 2014 /PRNewswire-USNewswire/ -- The report of HealthNet's $120.9 million second quarter profit, which is 4 times its 2013 second quarter profit, is yet another reminder, amid a slew of massive health insurer profit reports, of the need for Proposition 45's protections from health insurer profiteering said Consumer Watchdog Campaign today.

Proposition 45 will shine a light on health insurer rate proposals and ensure reasonable rates and appropriate profits. It will require health insurance companies to publicly disclose and justify, under penalty of perjury, proposed rate changes before they take effect, and require that they get approval for rate hikes. It applies the same laws to health insurance that have saved California drivers over $100 billion since 1988, while making the auto insurance market highly competitive and profitable for insurers. More than 35 other states regulate health insurance rates, but not California.

"Price gouged consumers are funding the waves of profit that keep rolling in for California health insurance companies," said Rob Leonard with Consumer Watchdog Campaign. 

Health insurance companies' recent profit reports include:

  • $2.5 billion profit for United HealthCare for the first six months of 2014 and a dividend payout to investors of $367 million
  • $52.5 million for WellPoint subsidiary Blue Cross of California for the first quarter of 2014
  • $1.4 billion in profits for WellPoint for the first 2 quarters of 2014
  • $1.1 billion profit for Kaiser for the first quarter of 2014
  • HealthNet's $120.9 million second quarter profit, which is 70% of its total 2013 profit

"California consumers have been overwhelmed by a tsunami of relentless rate hikes because there is nothing at the federal or state level to stop insurers from imposing unreasonable increases," said Robert Leonard of Consumer Watchdog.  "Insurers hope that a $37 million campaign of deception will defeat Proposition 45. But if Prop 45 doesn't pass, health insurers will continue to stick it to consumers as they have for years." 

The four largest health insurance companies in California have contributed 99% of the $37 million given to the campaign against Proposition 45. Kaiser has contributed $14.6 million to the No on 45 committee, Anthem Blue Cross' parent company WellPoint has contributed $12.7 million, and Blue Shield so far has given $9.5 million. Four health insurance companies control 94% of California's health care Exchange, Covered California: HealthNet, Kaiser, Anthem Blue Cross, and Blue Shield. 

HealthNet points to its 14.3% increase in total enrollment in California to 2.5 million as a key factor in its Western Region and Government Contracts segments combined net income of $50.3 million for the quarter, which grew from $41.4 million during the same period last year.

For more about Proposition 45 visit: www.Yeson45.org 

Paid for by Consumer Watchdog Campaign – Yes on 45, a coalition of consumer advocates, attorneys, policyholders, and nurses. 777 S. Figueroa St., Ste. 4050, Los Angeles, CA  90017. Major Funding by Consumer Watchdog Campaign and Thomas Steyer.

SOURCE Consumer Watchdog Campaign

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Latest Stories
"We want to show that our solution is far less expensive with a much better total cost of ownership so we announced several key features. One is called geo-distributed erasure coding, another is support for KVM and we introduced a new capability called Multi-Part," explained Tim Desai, Senior Product Marketing Manager at Hitachi Data Systems, in this SYS-CON.tv interview at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.
SYS-CON Events announced today that Calligo, an innovative cloud service provider offering mid-sized companies the highest levels of data privacy and security, has been named "Bronze Sponsor" of SYS-CON's 21st International Cloud Expo ®, which will take place on Oct 31 - Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Calligo offers unparalleled application performance guarantees, commercial flexibility and a personalised support service from its globally located cloud plat...
DevOps at Cloud Expo, taking place October 31 - November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 21st Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The widespread success of cloud computing is driving the DevOps revolution in enterprise IT. Now as never before, development teams must communicate and collaborate in a dynamic, 24/7/365 environment. There is no time to w...
"We provide IoT solutions. We provide the most compatible solutions for many applications. Our solutions are industry agnostic and also protocol agnostic," explained Richard Han, Head of Sales and Marketing and Engineering at Systena America, in this SYS-CON.tv interview at @ThingsExpo, held June 6-8, 2017, at the Javits Center in New York City, NY.
Internet of @ThingsExpo, taking place October 31 - November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 21st Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The Internet of Things (IoT) is the most profound change in personal and enterprise IT since the creation of the Worldwide Web more than 20 years ago. All major researchers estimate there will be tens of billions devic...
"The Striim platform is a full end-to-end streaming integration and analytics platform that is middleware that covers a lot of different use cases," explained Steve Wilkes, Founder and CTO at Striim, in this SYS-CON.tv interview at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.
"With Digital Experience Monitoring what used to be a simple visit to a web page has exploded into app on phones, data from social media feeds, competitive benchmarking - these are all components that are only available because of some type of digital asset," explained Leo Vasiliou, Director of Web Performance Engineering at Catchpoint Systems, in this SYS-CON.tv interview at DevOps Summit at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.
21st International Cloud Expo, taking place October 31 - November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA, will feature technical sessions from a rock star conference faculty and the leading industry players in the world. Cloud computing is now being embraced by a majority of enterprises of all sizes. Yesterday's debate about public vs. private has transformed into the reality of hybrid cloud: a recent survey shows that 74% of enterprises have a hybrid cloud strategy. Me...
SYS-CON Events announced today that DXWorldExpo has been named “Global Sponsor” of SYS-CON's 21st International Cloud Expo, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Digital Transformation is the key issue driving the global enterprise IT business. Digital Transformation is most prominent among Global 2000 enterprises and government institutions.
SYS-CON Events announced today that Datera, that offers a radically new data management architecture, has been named "Exhibitor" of SYS-CON's 21st International Cloud Expo ®, which will take place on Oct 31 - Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Datera is transforming the traditional datacenter model through modern cloud simplicity. The technology industry is at another major inflection point. The rise of mobile, the Internet of Things, data storage and Big...
Kubernetes is an open source system for automating deployment, scaling, and management of containerized applications. Kubernetes was originally built by Google, leveraging years of experience with managing container workloads, and is now a Cloud Native Compute Foundation (CNCF) project. Kubernetes has been widely adopted by the community, supported on all major public and private cloud providers, and is gaining rapid adoption in enterprises. However, Kubernetes may seem intimidating and complex ...
"Outscale was founded in 2010, is based in France, is a strategic partner to Dassault Systémes and has done quite a bit of work with divisions of Dassault," explained Jackie Funk, Digital Marketing exec at Outscale, in this SYS-CON.tv interview at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.
"We focus on SAP workloads because they are among the most powerful but somewhat challenging workloads out there to take into public cloud," explained Swen Conrad, CEO of Ocean9, Inc., in this SYS-CON.tv interview at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.
"We are still a relatively small software house and we are focusing on certain industries like FinTech, med tech, energy and utilities. We help our customers with their digital transformation," noted Piotr Stawinski, Founder and CEO of EARP Integration, in this SYS-CON.tv interview at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.
"I think DevOps is now a rambunctious teenager – it’s starting to get a mind of its own, wanting to get its own things but it still needs some adult supervision," explained Thomas Hooker, VP of marketing at CollabNet, in this SYS-CON.tv interview at DevOps Summit at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.