Why is it that health insurance rate increases continue to get Government approval? Year after year my health insurance raises their prices. The price has gone up every year for the past 8 years.
I have seen price hikes of 20% and more, all supposedly reviewed by state governments prior to approval.
Yet the Postal Regulatory Commission denied a one cent increase in the price of a stamp in 2011. The reason for denying the request is unbelievable.
"A majority of the Commission finds that the recent recession, and the declining mail volume experienced during the recession, do qualify as ns extraordinary or exceptional circumstance," wrote the PRC. "However, the Commission finds that the requested exigent rate adjustments are not designed to respond to the recent recession, or its impact on mail volume. Rather, they represent an attempt to address long-term structural problems not caused by the recent recession."
Sure the recession is an extraordinary or exceptional circumstance causing the downfall of inumerable individuals, businesses, banks, cities and even entire countries. Yes, investment banks were given billions upon billions of dollars, insurance agencies were bailed out and the auto industry needed government help. Cities and states lost untold amounts of money and were forced to lay off millions of people, reduce pensions and salaries of employees. Many we're even forced to increase the cost of fees and services.
But the recession isn't what's ailing the Postal Service, of course not. You're in trouble because you don't know how to run your business.
The PRC denied The US Postal service a one cent increase on September 30, 2010 and that very same day, FedEx announced a 5.9% rate increase followed by UPS's announcement of their 5.9% rate increase on October 1st, the day after the Post office
got royally screwed.
I'm pretty confident the US Postal Service is screwed.