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Poizner wants Athem Blue Cross to Hold Off on Rate HikeFebruary 10, 2010 – Blaming the weak economy and rising costs, Anthem Blue Cross (an affiliate of WellPoint) has submitted to the California Department of Insurance a proposed rate increase of as much as 39 percent for some types of individual health insurance plans. However the company’s proposal is meeting resistance from California Insurance Commissioner Steve Poizner.
Poizner said that he is “asking that Anthem agree to postpone those rate increases until the Department’s independent actuary completes his review,” which would put the hikes off until May 1, 2010. His request is phrased as “a public benefit and to ensure that the policyholders are not forced into financial hardship as a result of Anthem’s proposed rate increases.”
Anthem has declined to say how many of its 800,000 California individual policyholders would be affected by the hike, but there is great concern that the premium increases could have “a devastating financial impact on hundreds of thousands of its policyholders in California,” according to a statement by Poizner, a view that has been supported by numerous complaints from Californians who feel increases of such a magnitude would be financially crippling. Health and Human Services Secretary Kathleen Sebelius has demanded specifics from the company, saying the company has “a responsibility to provide a detailed justification for these rate increases.”
Rate increases do not have to be approved by the state, so the department’s actuarial review to ensure compliance with California insurance law is the only recourse the state has. President Barack Obama has criticized the rate hike, and has used the incident to try to push health overhaul through Congress, where it has stalled.
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