To Make a Point About Skyrocketing Health Insurance Premiums, President Obama Shares the Story of Ohio Woman
EmailAs we reported earlier,in his pop-in on Health and Human Services Secretary Kathleen Sebelius's meeting with top health insurance company executives, the president read a letter from a Ohio woman to make a point.
At the briefing this afternoon, White House press secretary Robert Gibbs read the December 2009 letter, from Natoma Canfield of Medina, Ohio.
ABC News spoke with Canfield this afternoon.
Born and raised in Medina, she told us she’s a cleaning woman and her insurance company was Anthem Blue Cross/Blue Shield in Ohio – the company that just announced sizable premium hikes all over the country despite its parent company having made almost $5 billion in profits in 2009.
“I just could not afford it,” Canfield told us. “I went into debt trying to keep coverage when it was $500 a month, and I couldn’t do it anymore at $700 a month.”
Messages for Kim Ashley, the communications director of Anthem Blue Cross/Blue Shield in Ohio, were not immediately returned.*
Here’s the letter she wrote the president, per Gibbs:
"Dear President Obama:
“I am 50 years old. I was diagnosed with carcinoma 16 years ago. And following my divorce 12 years ago, I became self-employed.
“After my COBRA benefits ran out, I was able to find costly but affordable health insurance. As a responsible individual, I have struggled to maintain my individual coverage and have increased my deductible and out-of-pocket limits in an attempt to control my cost and keep my health insurance.
“Last year, 2009, my insurance premium was increased over 25 percent, even though I increased my deductible and out-of-pocket to the highest limits available. I paid out over $6,075.24 in premiums, $2,415.26 for medical care, $225 in co-pays, and $1,500 for prescriptions. I never reached my deductible of $2,500, so the insurance company only paid out a total of $935.32 to my providers.
“I must repeat, in 2009 my insurance company received $6,075.24 in premiums, and paid out only $935.32.
“Incredibly, I have been notified that my premium for the next year — for next year, 2010, has been increased over 40 percent, to $8,496.24. This is the same insurance company I've been with for 11 cancer-free years. I need your health reform bill to help me. I simply can no longer afford to pay for my health-care costs.
Thanks to this incredible premium increase demanded by my insurance company, January will be my last month of insurance. I live in the house my mother and father built in 1958, and I am so afraid of the possibility I might lose this family heirloom as a result of being forced to drop my health-care insurance."
You can read a copy of the letter HERE.
Asked by ABC News how health care reform legislation would help Canfield, White House press secretary Robert Gibbs said, "it would provide her greater choice on the individual market. She would be able to join an exchange where millions like her — their purchasing power would be pooled to compete in different plans that provided her the best options."
He added that "once the bill is implemented, she's not going to have to worry about an insurance company discriminating against her on the basis of a preexisting condition."
Canfield told ABC News she was “just so amazed that a regular person from Medina, that the president read my letter and is mentioning my plight. When I wrote my letter I just wanted it to be counted in the numbers..of people who wanted the president to go for health reform. I never thought he’d read my letter.”
- Jpt
* UPDATE: Late Thursday afternoon, Anthem Ohio issued a statement: "We understand and strongly share our members’ concerns over the rising cost of health care services and the corresponding adverse impact on insurance premiums. Unfortunately, the individual market premiums are merely the symptoms of a larger underlying problem in Ohio's individual market – rising health care costs. The increasing demand for medical services, the use of new prescription drugs, and demand for advanced technologies are driving up the cost of health care at an unprecedented rate. Anthem is investing in many initiatives to reduce the cost of care, promoting wellness and preventive care for our members and communities, as well as, working with providers to encourage high-quality, evidence-based care, which costs less over time. In addition, our health plans offer members significant discounts through access to a large network of health care providers across the country. These efforts, however, cannot completely offset all the increases linked to the cost of care. The pricing structure of our individual products is a reflection of the medical risks and costs associated with this market. As the cost of care increases, premiums rise accordingly.
"Anthem regularly evaluates its rate structure to make sure that the cost of claims incurred is offset by the premiums collected, and that we anticipate the cost of future, expected claims. At times, based on the cost of covering benefits, rates may be either raised or lowered. To assist members who are looking to explore alternative plan options, Anthem offers a team of licensed Health Plan Advisors. These advisors are dedicated to assisting members in finding solutions to meet the balance between their coverage needs and their budget, especially in these challenging economic times.
"It is important to note that premiums are expensive because the underlying health care costs are expensive. Anthem offers a variety of health benefit plans, and we are dedicated to working with our members to find health coverage plans that are the most appropriate, and affordable for their needs. We are more than happy to take a look at a member’s health benefit plan and review possible options to more closely meet the member’s current needs. This may include moving to a lower priced plan.
"We are determined to support quality care for our members, we share their concerns about the upward rise in premiums and must adjust our rates as needed to cover the costs and risks associated with providing quality health care for all of our individual members."
Obama: 'Now Is the Time For Common Sense Action' 
Romney Takes Aim at Conservatives
Sorry Barack, you can’t top Louise Slaughter’s sad tale of the woman using her dead sister’s dentures. However, if you ask Joe Biden maybe he can assure you of the young fellow in Scranton who uses his autistic step brothers prosthetic leg!
Posted by: pauldia | March 4, 2010, 3:30 pm 3:30 pm
I’m sure she’ll be pleased when premiums go up 100% after the bill is passed. Sounds to me like this woman would benefit from catastrophic care insurance, something that Obama’s bill won’t allow the sale of. Too bad.
Posted by: Ron | March 4, 2010, 3:34 pm 3:34 pm
who believes his “stories” any more? Only the blind!!!!!
Posted by: whatsgoingonhere? | March 4, 2010, 4:21 pm 4:21 pm
“Sounds to me like this woman would benefit from catastrophic care insurance”
Posted by: Ron | Mar 4, 2010 3:34:32 PM
Ron, you have a bright future selling used cars. Have you even read the above post?
Posted by: Flash Override | March 4, 2010, 4:22 pm 4:22 pm
What about someone so poor and thus without insurance so he had to give himself hair transplants with a Garden Weasel . So sad to think this was once a great country till the white eyes messed it up .
Posted by: nat turner | March 4, 2010, 4:24 pm 4:24 pm
Details, details, details. Where are the details?
If the CBO can calculate how much health insurance reform will cost, then there must be details as to how much premiums and premium assistance will be.
But all we get are generalizations of ‘anticipated’, ‘proposed’, ‘potenial’. How about just a few details?
Heck, give me a chart, spreadsheet…something with the figures used by CBO to calculate just how much a plan will or will not cost.
Posted by: malcat | March 4, 2010, 4:30 pm 4:30 pm
There aren’t details because frankly nobody really knows the costs. Most assumptions use best-case estimates based on current economic data.We are in a period of historically low interest rates-what happens to these projections once the economy starts moving again and interest rates move up?
Posted by: Nephron | March 4, 2010, 4:49 pm 4:49 pm
A very moving story.. that is similar to mine.. without the dropping of insurance and the current illness.. it’s all true.. To me, it sounded as if Gibbs almost said that it wouldn’t really help this particular individual.. so the rising tide of this bill does not raise all of the boats.
Posted by: DontGet818OnMeNow | March 4, 2010, 4:59 pm 4:59 pm
How will passage of the HCR help this woman right now? She says she is to the point where she cannot afford her premiums any longer. The benefits for HCR do not start until 5-8 years from now – what will she do in the mean time?
Posted by: sadiemom | March 4, 2010, 5:36 pm 5:36 pm
Perhaps ObamaCare will help people like this poor woman–in 2014 when it goes into effect.
Posted by: ollie | March 4, 2010, 6:06 pm 6:06 pm
The best thing to combat health insurance cost are jobs, jobs that pay well. I don’t know this womans circumstances, why she is where she is at other than divorce but I do admire her for working and yes helping those in need is up to all of us therefore help in paying for her care is ok by me. Yet, I do not want the Government running my choices of what health care I have unless I am broke and can’t do it on my own.
Posted by: david | March 4, 2010, 6:24 pm 6:24 pm
I looked up premiums in her area for her age with multiple companies and found many with much lower premiums than she was paying and lower deductibles.
Most states regulate their health insurance and have time limitations of what is considered pre-existing.
She may want to buy some internet and look up ehealthinsurance.
Posted by: toby hill | March 4, 2010, 6:32 pm 6:32 pm
$8,496.24, is the highest amount mentioned, in the letter
No mention of income amount, but….
Here’s what is paid through taxes in Canada, by income level.
Average cash income of $11,309; $389 paid for public health care insurance.
* Average cash income of $24,271; $1,076 paid.
* Average cash income of $32,866; $2,214 paid.
* Average cash income of $41,637; $3,449 paid.
* Average cash income of $51,298; $4,862 paid.
* Average cash income of $64,415; $6,245 paid.
* Average cash income of $78,430; $7,750 paid.
* Average cash income of $96,217; $9,873 paid.
* Average cash income of $122,321; $12,877 paid.
* Average cash income of $232,739; $29,575 paid for public health care insurance.
Posted by: Murray | March 4, 2010, 6:42 pm 6:42 pm
Anthem/Blue Cross provided insurance for 100,000,000 Americans last year, and made a profit of $5,000,000,000, which is $50 per policy. Even if Anthem/Blue Cross made no profit at all, and reduced premiums by that amount, it would only knock $50 of the average premium. Since your average premium is about $8,000, that would mean a reduction of 0.625%.
Posted by: Murray | March 4, 2010, 6:49 pm 6:49 pm
Its funny how most of these comments are making fun of this woman’s situation.
But just bring up gays or abortion and everyone remembers how Christian they are. lol
Posted by: Porscha | March 4, 2010, 6:55 pm 6:55 pm
You know from experience that we have reached the lowest common denominator when we have to invoke stories of suffering that politicians have no relationship. We know from experience that we are going to take a drubbing when they pull that out of their bag of tricks. I am so sick of these liar, thieves and thugs in suits. They think that every American is a mindless idiot and they can do what ever they want and we will grin and bear it. We have to have another party in this country. The two we have now are one and the same with each competing to see how each can steal anything that is not bolted to the ground from the American people.
Posted by: Roy West | March 4, 2010, 8:16 pm 8:16 pm
I was one American who really thought that President Obama would have a positive impact on the political landscape. Was I ever wrong. He is every bit the slick Willey politicians that friends warned me he would be. From his health care fake crisis to the illegal war in Iraq and the handing of money to foreign governments it is now apparent that he was only doing so to enrich his own pocket book.
Posted by: Roy West | March 4, 2010, 8:18 pm 8:18 pm
The Republicans won’t help this woman at all!
Posted by: hybridhealthcare | March 4, 2010, 10:08 pm 10:08 pm
Let’s see…
Hope and change… how is that working out?
Free medical care… you are not going to like it, I promise you…
Posted by: Quo Warranto | March 4, 2010, 11:13 pm 11:13 pm
What’s wrong with you people that you take the side of a massive insurance conglomerate over that of a single citizen running her own private small business? Why are you automatically defending premium increases of Anthem rather than the light of small business? Do you think Obama is making this up or cherry picking the one heart wrenching story he could find? Small business owners all across the country are struggling under the weight of insurance premium hikes. Insurance companies are bleeding Americans dry. What gives with you people and the automatic hostility against this woman and
Obama?
Posted by: Chris | March 5, 2010, 4:17 am 4:17 am
Gibbs cited pre-existing condition coverage, but she said she got coverage 12 years ago. Her cancer was diagnosed 16 years ago. So she got individual insurance, despite her previous diagnosis.
As for premium cost, I repeat what Melcat said above. They tell us with such certainty how this cost or that cost will behave in the future. But they can’t tell us what THIS WOMAN’S future premiums would be. It’s all smoke and mirrors. No one (but the insiders) knows how this is actually going to work for the individual.
Oh…to the media…I’m sick of the anecdotal sob stories. There are many policy holders with that same insurance company who paid far less in premiums last year than was paid out for their care. But if they wrote a letter, you would ignore it. No victim, no news!
The other problem with anecdotes is that we have no way of knowing what someone did to prepare for a rainy day. The “uninsured” are all lumped together, all desrving my money. But how many of them simply chose to spend their money on something else, something I couldn’t afford for myself (new car, big screen tv, Ipod?).
This bill assumes anyone who can’t “afford” health care is a victim. It doesn’t discriminate for those who were simply irresponsible.
Posted by: jeanneb | March 5, 2010, 6:01 am 6:01 am
jeanneb wrote: “This bill assumes anyone who can’t “afford” health care is a victim. It doesn’t discriminate for those who were simply irresponsible.”
.
That’s all right… PROGRESSIVE MAMA is going to write this woman a check to pay for her health insurance from now on… she’s going to put HER money where HER mouth is.
.
She told ME on another thread that “Usually those with a clenched fist have managed to hold onto nothing worthwhile” for DARING to try and keep more of my hard earned dollars from going to the government for their continuous wasteful and worthless SCHEMES.
.
The PROGRESSIVES like to preach to everyone here about the plight of their latest VICTIM of the day…. so in the words of B.o. the time for TALKING is over. Anti-up PROGRESSIVES. Or are you going to sit around and wait for your sugar-daddy government to take care of these things like you usually do.
Posted by: gk | March 5, 2010, 7:51 am 7:51 am
gk, I seriously doubt if you have read the bill.
The biggest factor in it it the establishment of an exchange, where anyone can join a pool of other ‘customers’ to get a better insurance rate. This doesn’t involve anyone getting free insurance but just using the power of belonging to a group to get a much lower premium.
How is that not a good idea?
Unless you are an insurance exec!
Posted by: Lydia | March 5, 2010, 8:20 pm 8:20 pm
Murray, were the figures you used from Canada the total taxes they paid, like our income taxes?
And about those profits of the insurance companies, that isn’t the problem, it is their high overhead. They spend way too much on administrative cost compared to Medicare.
A company I worked for would purposefully lower their profits before year end by giving bonuses, decking out offices, etc. One has to look at the total percentage they use up to run the company vs. what they pay out for medical expenses for their patients.
Remember, an insurance company is only a middle man, they take our money, put it in a big pile with everyone else’s, they make payments to doctors and hospital, etc. The percentage they pay out should be much higher than it is or they are charging too much.
Posted by: Lydia | March 5, 2010, 8:27 pm 8:27 pm
Lydia wrote: “gk, I seriously doubt if you have read the bill.”
.
Well, we definitely know you haven’t. You tell me where CONGRESS has the authority to FORCE me to buy anything under the penalty of monetary fine or even jail time. Once you are convinced this is a “GOOD IDEA”, then we can discuss the rest of the crap in this bill.
Posted by: gk | March 5, 2010, 9:40 pm 9:40 pm
gk, I wrote you about the exchange. Is this a bad idea to you or not, because it is the mainstay of the bill for the currently uninsured.
Posted by: Lydia | March 5, 2010, 9:52 pm 9:52 pm
gk, so you agree that the insurance exchange is a great way to get those overpaying or not insured now, to be able to buy affordable insurance.
So what specifically do you not like about the bill?
Posted by: Lydia | March 5, 2010, 10:20 pm 10:20 pm
“So what specifically do you not like about the bill? ”
.
Which bill? House, Senate, oBama’s?
Posted by: gk | March 5, 2010, 10:36 pm 10:36 pm
gk, so you’ve got nothing.
Posted by: Lydia | March 5, 2010, 10:38 pm 10:38 pm
“gk, so you’ve got nothing”.
.
I think you’re the one with nothing. You still haven’t told me where Congress has the authority…. till then, it doesn’t matter what the bills have, it doesn’t matter about exchanges, it doesn’t matter.
.
This DEMOCRAT congress took $800 billion and “spent” it on stimulus with the guarantee that unemployment would rise to 9% if this drastic action was not taken. How well did that work for ya? They are either liars or incompetent… yet you want them to take over and do their same magic on health care. Unbelievable…
Posted by: gk | March 5, 2010, 10:50 pm 10:50 pm
gk, why is it so upsetting to you that everyone may have to buy insurance? Do you get upset at the fact everyone with a car has to buy auto insurance? Why is it any different to buy insurance for your body?
As far as the stimulus bill goes, I’m not surprised that the unemployment is still so high. Look at the rates in other countries where our big banks shenanigans caused havoc. It is silly to expect a guarantee of a certain unemployment rate when we are talking about a huge economy like ours that had been in a free fall.
Posted by: Lydia | March 5, 2010, 10:58 pm 10:58 pm
gk, good night.
Posted by: Lydia | March 5, 2010, 11:09 pm 11:09 pm
“gk, why is it so upsetting to you that everyone may have to buy insurance? Do you get upset at the fact everyone with a car has to buy auto insurance? Why is it any different to buy insurance for your body? ”
.
Tomorrow I want you to go out and purchase hurricane insurance. Don’t have hurricanes in your part of the country? NO problem, it will help out those of us who have to purchase it. Next purchase flood insurance. No floods in your part of the country? NO problem, it will help out those of us who have to purchase it. IF you DONT buy these, let me know and we’ll see to it that someone from the oBama Flood Insurance Mandatory Compliance Committee staff gives you a call.
Posted by: gk | March 5, 2010, 11:13 pm 11:13 pm
Tomorrow I want you to go out and purchase hurricane insurance. Don’t have hurricanes in your part of the country?
_____________________________________
No illness, ageing, injuries or accidents in your part of the country?
Posted by: tierra | March 6, 2010, 1:54 am 1:54 am
She told ME on another thread that “Usually those with a clenched fist have managed to hold onto nothing worthwhile” for DARING to try and keep more of my hard earned dollars from going to the government for their continuous wasteful and worthless SCHEMES.
___________
Give you an example. I pay 90% of the premiums for health care insurance for my employees– and I don’t have to. Its a very small business. And yet a couple of them are using rhetoric quite a bit like you, ranting about the progressives– you know, like the one that pays for their health insurance. LOL. My husband knows a few peeps like that too.
Its an observation. I stand by it.
Posted by: progressive mama | March 6, 2010, 9:43 am 9:43 am
It is silly to expect a guarantee of a certain unemployment rate when we are talking about a huge economy like ours that had been in a free fall.
Posted by: Lydia
—
Yep. But a lot of people ate that dog food. That was way back yonder when independents were listening to this man and were willing to believe him. And were willing to believe he wasn’t intent on raping this country. I was foolish enough to support that rather than see the whole of the car industry and their vendors lose their jobs.
Posted by: smartlillena | March 6, 2010, 9:47 am 9:47 am
I’m sick of the anecdotal sob stories.
_________
Ah yes, because real people don’t matter. Just kick the chronic problem down the road, bury your head in the sand and avoid real people experiencing these things.
I like the stories. They put faces on the problems. Whitewashing that– scrubbing it out– is something mass murderers and cold-blooded killers do. And its destructive.
Posted by: progressive mama | March 6, 2010, 9:52 am 9:52 am
HOLD ON!
If socialized medicine works so well in SO many countries, why are the poepl of the US so against it!
I hear people complain when they hear anything to do with any social idea as to insurance and medical, and yet, the US has Medicare, which is RUN by the Government! isnt that that social medicine?!
I say tax a littl emore, and socialize medicine, but use the countries that have their social medicine in the TOP 3 of the world.
Posted by: DeVoID | March 11, 2010, 9:34 am 9:34 am
Whine all you want to about the “evil” insurance companies, but it is delusional to believe that either healthcare or coverage will become either cheaper or better by creating a huge government bureaucracy to administer the system according to an impossibly dense, corrupt and complicated set of rules. Please tell me what good or service has EVER become cheaper or better by giving the government substantial control over it? Indeed, the current government healthcare programs, Medicare and Medicaid, are disasters: Medicare is swallowing the federal budget and still going broke, and Medicaid is bankrupting state governments . . . so the solution to these government healthcare disasters is to increase government’s role in healthcare???? Sorry, but I don’t get it. The only logical justification for Obamacare is a misguided desire to make healthcare EQUAL for everybody. Yes, a lot of people think that Equality is more important than Quality! And they think Obamacare will give everyone equal access to healthcare. But even that is wrong. Instead, under Obamacare, most people will get equal healthcare, but it will be equally bad. And, of course, the political elites and the ultra rich will always get the very best care. The rest of us will stumble along with the dregs of a collapsing healthcare system, brought down by Obamacare.
Posted by: Bathus | March 16, 2010, 12:13 am 12:13 am
Dear President, My husband and I
have blue cross – blue cross health insurance with a 2500 deductible because
they raise our preimuins so high. Now
they have us paying over 1,000 a month.
How can we continue to pay such high
bills each month. will your health
reform help us have lower payments. By
the way we neither have reasponable
health.
Posted by: phyllis risk | March 21, 2010, 5:13 pm 5:13 pm
Why was this woman paying anything in premiums at all? If she paid 6000 in premiums and got only 1000 for it, the sensible thing to do would be to forgo insurance altogether and save 5000 bucks. Something about her story doesn’t sound right. If you knew that future medical costs wouldn’t exceed your deductible, why buy insurance at all? Just pay for it.
Posted by: milo | March 24, 2010, 9:08 am 9:08 am