At Least U.S. Health Care Works For Somebody – Health Insurance Company Profits Soar in Q1 2010.

Don’t talk to the insurance industry about the failures of the U.S. health care system, especially when insurance company profits are soaring in the first quarter of 2010.

WellPoint, the company that drew attention last year by proposing a 39 percent rate hike for some insurance customers in California, showed a first quarter 2010 profit of 51 percent, shattering Wall Street expectations.

Analysts say part of the reason for huge insurance company profits is “conservative” pricing, meaning a refusal to drop premium rates even though insurers have been blasted by the Obama administration for extraordinary rate hikes in times of high profits.

Another contributing factor to insurance company profits this year was a weak flu season last year. WellPoint estimates gaining $35 – $50 million in Q1 profit due to a flu season that failed to live up to the dire warnings of global health authorities.

WellPoint earned $876.8 million in Q1 2010, up from $580.4 million a year ago, while paying 3 percent fewer claims compared to the same period last year.

Analysts say that health insurance company profits would have been larger but for worry about the affect on profits resulting from the passage of the new health care reform bill.

http://internationalliving.com/2010/04/30-insurance-company-profits/