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KGO 7 (TV)

High cost health care

Dec 17, 2002

The cost of HMO premiums, co-pays and deductibles have gone up 20 to 30 percent this year in California and are expected to do the same next year.

The Foundation for Taxpayer and Consumer Rights calls that unfair and unnecessary.

Jerry Flanagan, Taxpayer & Consumer Rights: "While HMOs are raising rates they are crying poverty. ... Well, new data released by the state shows that five of the largest HMOs are sitting on 2.2 Billion excess cash reserves."

The foundation wants a new law passed that demands health insurance companies get permission before raising rates. Just like auto insurers.

HMO's say adding more layers of regulation will increase costs, not bring them down