The AP (2/13, Johnson) reported that 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." The 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." The Los Angeles Times (2/14, Lifsher) reported that the postponement until May 1 "followed a barrage of criticism in recent weeks from policyholders, consumer advocates, regulators, state legislators, members of Congress and the Obama Administration." HHS Secretary Sebelius said the agreement "underscores the urgency of passing real health insurance reform," adding, "While a two-month delay offers some temporary relief...what California families need is long-term health insurance security, so that they don't face sharply higher prices or fewer benefits."
In a front-page story, the San Francisco Chronicle (2/14, A1, Lagos), reported that "Sebelius noted Thursday that the company that owns Anthem reported a $2.7 billion profit in the last quarter of 2009, and that the premium increases are as much as 10 times higher than the percentage increase in national healthcare costs."
The New York Times (2/14, A21, Sack) also reported on Anthem's decision. And in a separate article, the New York Times (2/16, A12, Sack) notes that "the Obama Administration is seizing on the seething fury felt" by "nearly 700,000...Anthem customers in California who have received notices of increases." As the healthcare reform "debate seemed drained of urgency, the rate increases have permitted Mr. Obama to remind Americans of what is at stake, not just for the uninsured but for those whose coverage is threatened by unregulated hyperinflation."
More individual policyholders expected to see rate increases. The AP (2/13, Jonson) reported, "Consumers in at least four states who buy their own health insurance are getting hit with premium increases of 15 percent or more -- and people in other states could see the same thing." Already large increases have been announced for some consumers in California, Indiana, Maine, and Oregon. According to the AP, "steep rate hikes" for individual policyholders -- "about 13 million Americans, as of 2008 -- have popped up sporadically for years. Experts see them becoming increasingly common." As a result, "politicians and even some health insurers, including Anthem, are urging a revival of the stalled effort in Congress to overhaul the healthcare system, arguing everyone needs to be covered by health insurance in order to prevent such premium spikes."
Anthem raises said to be evidence health reform is needed. A McClatchy (2/15) editorial recently appearing in the St. Louis Post-Dispatch noted that "Anthem Blue Cross is taking fire from an unusual combination of state and national politicians for a staggering rate hike in California" targeted at "Americans who buy health insurance on their own." HHS Secretary Sebelius admonished, "These extraordinary increases are up to 15 times faster than inflation," and "she's not the only one with concerns." According to McClatchy, healthcare reform "must not be abandoned" because it would "gradually phas[e] out individual policies in favor of deeper national or state risk pools."
Indiana to further investigate Anthem premium increases. The Indianapolis Star (2/13, Lee) reported, "Indiana's Department of Insurance on Friday said it is confident that it has the regulatory process necessary to make sure the premium increases faced by those with individual health-insurance plans are justified." The department said that it "has received six formal complaints from Anthem customers about premium increases on individual plans in 2010. Those complaints will trigger further review of those rate hikes, which already have been approved by the state." Doug Webber, acting commissioner and chief legal counsel for the department, said, "That is a process that happens on every premium increase in Indiana."
