Health-cost reality bites much harder

The last column I wrote — about how some insurance CEOs are jacking up health premiums while waltzing off with fat year-end bonuses — sure had readers upset with me.

Not for being too hard on the CEOs. For being too soft.

"I don't know where you got the numbers you're reporting, but they're way too low," phoned Anneliese Whitney, 70, of Renton, in a typical call.

Whitney was ticked off that I cited the state insurance commissioner's office as saying health premiums went up on average 6 to 17 percent last year, depending on the plan or company.

"They should come out and look at my plan!" she shouted.

Her supplemental coverage to Medicare from Regence Blue Shield soared from a little more than $98 a month to $195 — a 98 percent boost.

She's hardly alone, I learned.

"I would love to have only a 17 percent increase from Regence this year," wrote Mike Milchem, of Camano Island. He got the same 98 percent sticker shock.

More than a hundred people wrote or called with stories of astonishing rate hikes. Many said they were frustrated with the press. Not for sensationalizing. For underplaying what's happening out in the health-care trenches.

Many described premiums going up far more than the 39 percent proposed last week by Anthem Blue Cross in California, a story that got national attention.

"This year saw my premium go up SEVENTY-SIX PERCENT," wrote Linda Kager of Seattle, making sure I got the point. "Not 17%, or even the infamous California 39%."

Echoed Evelyn Fernandes, of Kirkland, whose plan also went up 76 percent: "I can't feel too sorry for those whose premiums were raised 20% — they were lucky."

She added: "Being old in America is not amusing."

Most of the huge increases are in Medicare Advantage plans — often called "private Medicare." They are plans partially subsidized by the government and sold by private firms. They substitute for and typically broaden standard Medicare coverage.

As usual, each side blames the other for this year's big rate hikes. The government says the private firms are gouging too much money from the plans. The firms say cuts to the program forced them to raise rates.

None of this strikes me as a good omen for health-care reform. Because the current reform bill is based on just such a marriage of government aid and private insurance.

Still, the horror stories were not limited to government programs. Example: Enumclaw's Judy Eades reports the total cost of the private Premera Blue Cross plan for her and her husband George, both retired but at age 64 too young for Medicare, rose from $1,150 to $1,692 a month — a 47 percent increase.

"It was shocking to get that bill," she says. "I guess I'm just resigned to paying it.

"I don't know — you vote for people who you think might solve some of these problems. But it never seems to happen."

I heard that a lot. Intense doubt that any help is on the way.

"I'm divorcing myself from both political parties," said Pat Mayovsky, of Seattle, who phoned to say her premium rose 52 percent. "They're fighting among themselves so much they're not taking care of the United States."

Politicians, insurance executives — do you hear what people are saying here?

They're saying: Health care is breaking us. Meanwhile you're fighting, making excuses, running TV ads against each other. All the while reaping huge profits off the mess, as you always do.

For their part, the insurance firms weighed in on how misguided and simplistic I am. They are not the cause of high medical costs, they said. Their CEOs earned those bonuses.

"I understand that the salary and particularly the stated increase in compensation may be surprising news," Bobbie Berkowitz, chair of Group Health's board, wrote in a letter to members. (She was referring to the fact that Group Health's CEO had $1.6 million in total pay in 2009, up 31 percent from the year before. Some rank-and-file workers at Group Health found this hard to swallow, as they'd had their own wages frozen or cut.)

Berkowitz said the pay is deserved because health care is a complex, demanding business.

"In short, Westneat has done a good job of finding sound bites with emotional appeal, but like it or not, he's oversimplified the situation when it comes to executive pay."

You know what? I plead guilty to that. I suppose I did miss the real story.

Which is: It's way worse than I thought.

Danny Westneat's column appears Wednesday and Sunday. Reach him at 206-464-2086 or dwestneat@seattletimes.com.