Probably not a rumor - the plans don't cover the costs hospital incur to deliver care.
It's that simple, and it is a very simple concept to grasp - if an entity cannot cover its costs (no matter what "product" they deliver or manufacture), they won't stay open very long.
Now, we can debate until the cows come home "why" health care costs so much compared to other countries - that in itself is a side issue.
The CORE issue, is that insurance plans just don't pay enough to cover the costs hospitals incur - and like any other business, promptly pass along to the consumer/ patient/ insurance company.
So, until the government can figure out how to control ALL of those other costs, the cost of delivering healthcare will continue to go up.
Here's another example of what I'm talking about (news that just came out...):
National Grid Electricity Rates To Rise 37 Percent
BOSTON — National Grid is warning customers that they will see a significant increase in their electricity bills beginning in November.
The company recently filed with the state to adjust rates for the winter and says bills could rise by 37 percent because of higher power supply prices — which the company describes as “the cost of the electricity National Grid buys for customers and passes on without a mark up.”
“Because that commodity has increased in price so much, customers are going to see a significantly higher bill this winter than they did last winter,” National Grid spokesman Jake Navarro told WBUR. “For a typical residential customer, who uses 500 kilowatt hours a month, we’re talking about a $33 impact to their electric bill. That’s definitely a significant increase.”
National Grid’s gas rates, however, are expected to be slightly lower this winter. The company filed to reduce that rate by 1 to 3 percent.
The Boston area is serviced by both National Grid and NSTAR. We’ve reached out for rate information from NSTAR, but have yet to hear back.
http://www.wbur.org/2014/09/24/boston-e ... rates-rise
Healthcare costs in the northeast are probably higher than most other parts of the country - but our costs for EVERYTHING is also higher than most parts of the country. Does anyone seriously thin that any healthcare facility can/ will be able to absorb a 37% increase in the costs of electricity?
Which leads to a larger question - "why" does the government allow this phenomenon where utilities can buy-up power plants and then close them down? This has been occurring a lot lately. We have at least three power plants closing in Massachusetts alone.......
Report: Households See Electricity Prices Rising At Record Levels
Electricity prices are on the rise across the country, according to federal government data. The average price has risen more than 3 percent since the same time last year — the highest year-over-year growth for the first half of the year since 2009.
According to the U.S. Energy Information Administration, residential electricity prices — what households pay to keep the lights on — averaged 12.3 cents per kilowatt hour for the first half of this year. This is 3.2 percent above the average price this time last year.
New England, however, saw prices rise significantly more than the national average. Since last year, prices have risen 11.8 percent, the highest of any U.S. region. The Mid-Atlantic states also saw huge price increase as electricity rates have jumped 6.7 percent over prices during the same time last year.
In New England prices jumped after wholesale power prices were 45 percent higher during the first half of 2014 than the same period last year to $93 per megawatt hour. New England utilities have been trying to rapidly expand their energy infrastructure to get more energy to households and businesses, according to EIA, which is part of the reason for the prices hikes.
http://dailycaller.com/2014/09/02/repor ... rd-levels/
This price increase stems from the conversion of coal-fired plants to natural gas - which, we were told, is cheaper, because the US is the world's #1 producer of natural gas. So, why the rise in electricity rates? Makes you wonder, huh?