The San Francisco Chronicle (2/11, A1, Colliver) reports on its front page, "Angry lawmakers turned up the heat on Anthem Blue Cross on Tuesday, calling for federal and state investigations into" its proposed premium increases. Rep. Henry Waxman (D-CA) "led the way by scheduling a Feb. 24 special hearing on the increases." In addition, Sen. Barbara Boxer (D-CA) asked California "Attorney General Jerry Brown to investigate" and Sen. Dianne Feinstein (D-CA) asked "state Sen. President Pro-Tem Darrell Steinberg, D-Sacramento, to introduce legislation to regulate rates." So far, Anthem "has refused to disclose how many people are affected or how high rates will rise," and "has yet to respond even to Monday's request by state Insurance Commissioner Steve Poizner to delay the rate increases until May 1." In preparation for the scheduled hearing, Rep. Waxman has "demanded" from WellPoint CEO Angela Braly that she "produce a detailed explanation of the proposed Anthem rate increase, along with evidence showing claims history and profits for individual policies from 2005 through 2008." Anthem is a subsidiary of WellPoint.
Dow Jones Newswire reports on plans by Rep. Waxman and by Poizner to investigate the premium increases as well as critical remarks by President Obama. Industry analysts are said to be unconcerned. Wachovia Securities' Matt Perry is quoted saying, "We see the episode as a lot of noise and little else." HHS Secretary Kathleen Sebelius in a letter to Anthem President Leslie Margolin said, "I believe Anthem Blue Cross has a responsibility to provide a detailed justification for these rate increases to the public. ... Additionally, you should make public information on the percent of your individual-market premiums that is used for medical care versus the percent that is used for administrative costs." America's Health Insurance Plans spokesman Robert Zirkelbach said, "Unless steps are taken to address the underlying cost of medical care, healthcare costs will continue to grow at an unsustainable rate." NPR (2/10, Varney) also covered the story.
Other insurers said to be raising rates. The San Francisco Chronicle (2/11, Colliver) reports, "Anthem Blue Cross customers may be hopping mad about their rate hikes, but members of other health insurers say they're also getting hit with sky-high increases." And "consumers said they appreciate the additional scrutiny and hope it will produce change." Firms mentioned as raising rates are Health Net and Aetna.
WellPoint raises rates in Indiana. The Indianapolis Star (2/11, Lee) reports, "Indiana customers of WellPoint are joining Californians in their outrage over steep hikes in the premiums they pay for individual health-insurance coverage." And "the increases in Indiana came to light after WellPoint...encountered criticism this week...for increasing premiums on individual health insurance plans by as much as 39 percent in California." In Indiana, the state's "Department of Insurance said it uses an independent actuary to evaluate each premium increase for individual insurance products."
Anthem rate increases said to make case for healthcare reform. The Los Angeles Times (2/11) in an editorial says, "With the pending healthcare bills proposing new limits on premiums and profits," recently announced premium increases by Anthem Blue Cross, "look suspiciously like an attempt to extract as much as possible from customers before the rules change." While "the response from state and federal regulators was swift and heartening," the Times says that "to truly protect consumers...Congress should pass a healthcare reform bill that makes it easier for people to switch insurers without sacrificing coverage," which, the paper says, current bills passed by either the House or Senate do. In fact, "Anthem's actions offer the best argument yet for Congress to complete work on a comprehensive bill without delay."
