Anthem to delay insurance rate hike amid criticism

[Newsjock]

Source: Associated Press

Health insurer Anthem Blue Cross will postpone its much-criticized plan to raise rates for some California residents who buy insurance on their own, after reaching a deal Saturday with state regulators.

Anthem's planned rate hike, which the state estimates would affect about 700,000 customers, averaged 25 percent and would have been as high as 39 percent for some.

Anthem Blue Cross of California, based in Thousand Oaks, agreed to postpone the increase from March 1 until May 1 so California could have outside experts review the company's complex and detailed plan filing, including data on the medical costs it expects to incur.

The California Department of Insurance had been working with Anthem since mid-November to get more information about the increase, Insurance Commissioner Steve Poizner said. He wanted to have experts comb through the company's figures to confirm the new rates comply with a 2006 state law that insurers spend 70 cents of every premium dollar on medical care.

"Medical cost inflation in California is in the 10 to 15 percent range, so I have a healthy skepticism how they can get to 39 percent" and comply with the law, Poizner said.

Read more: http://www.sfgate.com/cgi-bin/article.cgi?f=/n/a/2010/02/13/financial/f133045S10.DTL&tsp=1

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Of note: Poizner is a Republican candidate for governor.

[CaliforniaPeggy]

1. He may be a Republican candidate for Governor...

This move on his part is very savvy.

[AlbertCat]

2. DELAYING hikes

Whether it's a rate hike or a hike on the ol' Appalachian Trail....Repugs just delay.... Tom Delay, that is! Badda Bing.


You'll note a "delay" means it will happen later. But for NOW (and that's all that matters, now!) everything is fine and so Anthem is not the monster it actually is.... or something...

Also...I'm on the coast of NC buried in snow...so since that too is NOW....global warming is obviously a hoax.

This has been a message from Repug Worldview! Over and out.

[juajen]

3. See, protesting loudly, clearly and en masse is effective. NT

[PSPS]

4. Then why did the California Department of Insurance approve it in the first place?

Do they just rubber stamp everything that comes across their desk?

Anthem Blue Cross of California, based in Thousand Oaks, agreed to postpone the increase from March 1 until May 1 so California could have outside experts review the company's complex and detailed plan filing, including data on the medical costs it expects to incur.

So, what? The regulators didn't already do this? They don't have the talent on staff whose job is to do this? They have to hire "outside experts" (likely insurance company employees who will always see things in the insurance companies' favor?)

The California Department of Insurance had been working with Anthem since mid-November to get more information about the increase, Insurance Commissioner Steve Poizner said. He wanted to have experts comb through the company's figures to confirm the new rates comply with a 2006 state law that insurers spend 70 cents of every premium dollar on medical care.

So Anthem get to raise the rates absent confirmation that the rate increase conforms to existing statute? Why didn't Poizner tell Anthem that, without his requested "more information about the increase," they couldn't raise rates?

Is Poizner's position elected? Or is it a political appointment, meaning he would be "insurance company friendly" when installed by a republican hood.

Also, notice the joke "limit" on profiteering -- 70% of every premium dollar is supposed to go to medical care. That's 30% skimmed off the top to fund bonuses, mansions, yachts, islands, hookers and, of course, bribes to the politicians to keep them in line. Medicare does the same thing with 90% less "overhead."

[Name removed]

5. Deleted message

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[Skittles]

6. I love how they act like 10-15% cost inflation is normal

[dmosh42]

7. Another reason to remove the anti-trust exemption! n/t

[RUMMYisFROSTED]

8. 70 cents per dollar?

Man, that's fucked up.