The Washington Post (5/6, Hilzenrath) reports, "The Obama administration escalated a long-running battle with one of the nation's largest health insurers Tuesday night, calling on state governments to scrutinize any rate increase sought by WellPoint." And, "in a broader effort to combat 'unjustified' premium increases, the administration also asked states to ensure their regulators have the authority to review rate hikes before they take effect." Notably, HHS Secretary Kathleen Sebelius "made the request after WellPoint withdrew a proposal to raise rates by as much as 39 percent for Californians with individual policies. California regulators determined that the proposed increase was based on erroneous assumptions."

        According to the Los Angeles Times (5/6, Helfand), Sebelius wrote to governors and state insurance commissioners, saying, "In light of this recent finding, I urge that, to the extent you have authority to do so, you re-examine any WellPoint rate increases in your state to determine whether any mistaken assumptions similar to those made in California were made in your state. ... Even small errors can mean unaffordable premiums for policyholders." In addition, "on Wednesday, US Sen. Dianne Feinstein (D-CA) called for congressional hearings into the errors."

        CQ HealthBeat (5/6, Reichard) notes that with respect to increasing states' authority over insurance rate increases, Sebelius said, "Not only will funding be available to states that have and exercise such authority, but, more importantly, such authority and its exercise will enable state insurance departments to better protect consumers."

        The AP (5/6, Murphy) reports, "An HHS statement that accompanied the letter said auditors found 'unreasonable assumptions' behind plans by WellPoint's California subsidiary, Anthem Blue Cross, to raise individual insurance rates as much as 39 percent for some customers." In response to the new criticisms, "Spokeswoman Kristin Binns said many of the insurer's rates have already undergone layers of review that include public hearings and examination by a third party."

        The Wall Street Journal (5/6, Johnson) says that WellPoint CEO Angela Braly is taking action to respond to the new criticism. Braly wrote in a memo that WellPoint will engage a third-party to review its 2010 rate filings, and determine how the errors occurred. Braly also promised to work with California Insurance Department officials to revise the rate filing in that state. Reuters (5/6, Heavey), NPR (5/6, Hensley), the National Journal and the Albany Business Review (5/6) also cover the story.

        Connecticut May Audit Anthem Rate Hike Request. The Hartford Courant (5/6, Sturdevant) reports, "Attorney General Richard Blumenthal and state Healthcare Advocate Kevin Lembo wrote a letter Wednesday to Gov. M. Jodi Rell (R) asking for an independent audit of Anthem Blue Cross and Blue Shield in Connecticut, a WellPoint subsidiary." Notably, "an independent audit, which Anthem should fund, will determine if the company made some of the same mathematical and actuarial mistakes as a WellPoint subsidiary made in justifying a rate request in California, according to Blumenthal and Lembo." The Courant adds, "Anthem Blue Cross and Blue Shield in Connecticut outraged some by requesting premium increases of 23 to 32 percent for people under 65 who bought individual plans. The Connecticut Insurance Department denied that request and approved rate hikes of 13 percent to 20 percent for Anthem's individual market plans."

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