Sunday, February 21, 2010
Angela Braly, WellPoint CEO
The reason why Anthem Blue Cross of California wanted to hike its insurance rates by 39% was because the insurer says it suffered a loss of business last year, and was further hampered by the bad economy. Not so. According to a congressional review of the insurance company’s filings with the National Association of Insurance Commissioners, Anthem actually enjoyed an increase in new policyholders, prompting a House subcommittee to call the insurer’s parent company’s top executive to testify next week.
“According to this data, enrollment in Anthem Blue Cross in California increased from 583,967 individual policyholders at the end of 2008 to 627,082 individual policyholders at the end of the third quarter of 2009,” reads a letter from Representatives Henry Waxman (D-CA) and Bart Stupak (D-MI) to Angela Braly, president and CEO of WellPoint. “We request that you explain why you have asserted that declining enrollment caused by the recession justifies your exceptionally large rate increases when your own data appears to show that your enrollment is growing.”
WellPoint enjoyed a profit of $2.7 billion in the last quarter of 2009 alone.
California wasn’t the only state where a WellPoint subsidiary has tried to jack up its rates. A report produced by Health and Human Services Secretary Kathleen Sebelius found Anthem of Connecticut wanted a 24% increase last year, but was rejected by the state; Anthem in Maine sought an 18.5% bump, but also was rejected by the state (and now is trying for a 23% increase); and Blue Cross Blue Shield of Michigan requested a 56% leap for plans sold on the individual market.
-Noel Brinkerhoff
Anthem Blue Cross' Statement Justifying Rate Hike Contradicted by Internal Documents (by Jason Leopold, Truthout)
Committee Letter to WellPoint (House Committee on Energy and Commerce)
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