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San Jose Mercury NewsWASHINGTON — Seeking momentum on the eve of a crucial meeting on health care reform, congressional Democrats on Wednesday seized on evidence that California's largest for-profit health insurer spent tens of millions of dollars on lavish corporate retreats and executive salaries even as it planned dramatic rate hikes for nearly 800,000 customers who buy coverage on their own.
Executives at WellPoint, the parent company of Anthem Blue Cross of California, came under fire at a House hearing after internal e-mails and other documents suggested that the company systematically works to curb how much it spends on medical claims, while prodding sicker patients into stingier plans with greater cost-sharing. The showdown was sparked by Anthem's plan to raise rates for its roughly 800,000 customers in California's individual market by as much as 39 percent, starting in May.
One day before a bipartisan health care summit that could prove critical to the fate of President Barack Obama's health reform plans, Democrats on a House panel took a populist tack, contrasting what they portrayed as the extravagant lifestyles of insurance executives with customers facing ever-rising costs.
"Corporate executives at WellPoint are thriving," said House Energy and Commerce Committee Chairman Henry Waxman, D-Los Angeles, "but its policyholders are paying the price."
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