Following is Health Net's response to my letter dated January 30 to Health President and CEO, Jay Gellert. The response is from Steven Sell, President of Health Net of California.
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February 12, 2009
Dear Mr. Strong,
Thank you for your January 30 email to Jay Gellert regarding Health Nets premium increases. As president of Health Net of California, Im responding on Jays behalf.
But first, Id like to respond as a fellow father. I was deeply moved by your letter, and I want to extend my heartfelt sympathy. Its never easy to communicate the necessity for premium increases, and in this case its especially difficult.
Health Net has done its best to hold the line on rate increases, but unfortunately we are not able to accommodate your request to roll back our new rates, as our premiums continue to be driven by steep upward trends in medical costs. In determining your premium, we consider the collective health care cost experience of all our members with the same kind of California Farm Bureau plan as you and set a new rate that affects all of those members.
From your letter, I believe you understand the complex economics of the industry, and you refer to a need for fundamental changes to the system. As a company, Health Net agrees. We are actively engaging in health care reform efforts, hoping to work with President Obamas administration to make affordable health care coverage available to all and to do away with medical underwriting. Listen to Jay Gellerts recent interview on American Public Radios Marketplace for more on this: click here.
I know that such long-term solutions do not help your immediate needs, but I want to extend our Employee Assistance Program services to you and your family right away and at no charge. Our EAP has counselors available 24/7 to help you manage the simple and complex challenges of daily life, emotional health and financial and legal issues. And while I know it doesnt address all your needs, I hope it will help your family in some way.
I want to assure you that Health Net is committed to developing strategies for holding the line on premiums and supporting efforts to reform our national health care. And I also want you to know that Im personally committed to these goals with families like you in mind.
Sincerely,
Steven Sell
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Thank you Mr. Sell for your personal, cordial response to my letter. I truly appreciate the effort and I no doubt understand, at a high level, that the macro issues facing the health care and health insurance industries are extremely complex. I applaud Mr. Gellert's purported public leadership role in organizing and enacting reform in the health insurance industry and I look forward to seeing progress made on that front; we all know it's long overdue. Unfortunately, for millions and millions of people it will come much too late.
In my opinion, the time for committees and councils and theoretical pontification is over; the time for real leadership, direction, and reform is now.
Actions speak louder than words…
but
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[unfortunately]+
not
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nearly
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as
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often.
Ironically, I also received a letter from the California Department of Insurance on the same day I received Health Net's response letter. I've asked them to look into the legality of our premium increases.