Anthem to Delay Insurance Rate Hike Amid Criticism

[babylonsister]

Anthem to Delay Insurance Rate Hike Amid Criticism
Anthem to delay 39 pct health insurance rate hike in California amid criticism, media glare
By LINDA A. JOHNSON AP Business Writer
THOUSAND OAKS, Calif. February 13, 2010 (AP)
The Associated Press


Health insurer Anthem Blue Cross said Saturday it would postpone its much-criticized plan to raise rates up to 39 percent for some California residents, agreeing to let regulators first review the decision.

The rate increases will be delayed two months as requested by the California Department of Insurance, said Brian Sassi, president of Anthem Blue Cross of California in Thousand Oaks.

The company said it welcomed a review by the department, and that its proposed rates reflect anticipated medical costs.

"Anthem filed these rates with the appropriate regulators in November of 2009," Sassi said. "They are actuarially sound and in full compliance with all requirements in the law. The rate adjustments have been reviewed by an independent expert."

Anthem, a subsidiary of WellPoint Inc., has been under fire for a week from regulators and politicians for notifying some of its 800,000 individual policyholders in California that it plans to raise rates by up to 39 percent March 1.

WellPoint blamed the recession and rising medical costs for the increase, but Health and Human Services Secretary Kathleen Sebelius said Thursday "it remains difficult to understand" how premium increases of that size can be justified when WellPoint Inc. reported a $4.75 billion profit in the last quarter of 2009.

She also noted that the premium increases are 10 times higher than the increase in national health care costs.

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http://abcnews.go.com/Business/wireStory?id=9830192

[Kdillard]

1. Funny what happens when the light is shined on these rats.

[DJ13]

2. Tell me again why we dont regulate insurance like we regulate utilities?

[subterranean]

3. Well, aren't they nice.

They've agreed to LET the regulators review the decision. I'm sure the regulators are grateful for that.

Oh, and a $4.75 billion profit in one QUARTER?? That's almost $20 billion a year in healthcare spending that's NOT being used for healthcare. That doesn't even include the high administrative costs spent on weeding out unhealthy customers and denying claims. And this is just one company!

[Autumn]

4. Delay? For two

whole months. That will work.:rofl: Sickening bastards.

[jtrockville]

5. Right... so regulators will review, THEN anthem will raise rates 39%