Sebelius urges Anthem Blue Cross to justify rate hike

Los Angeles Times: Health and Human Services Secretary Kathleen Sebelius "called on Anthem Blue Cross on Monday to justify its controversial new rate hikes of as much as 39% for individual policyholders." Sebelius "voiced concerns" in a letter to Anthem's president. The new rates "go into effect March 1 for many of the insurer's estimated 800,000 individual policyholders" (Helfand, 2/8).

The Associated Press: Sebelius noted in the letter that the rate increases "were hard to understand in light of the profitability of Anthem's parent company, WellPoint Inc." She also wrote that the company has a responsibility to justify these hikes. "President Barack Obama cited the Anthem rate hikes in an interview with CBS' Katie Couric on Sunday as a reason to move forward with his health overhaul legislation, which is stalled in Congress" (Werner, 2/8).

Reuters: "Sebelius called for Anthem to offer the public a detailed explanation of the rate hike as well as other information about how much of consumers' premium dollars go toward medical care rather than other expenditures."

"While it was unclear what, if any, steps the U.S. health department could take, Sebelius said she was 'very disturbed' and was 'closely monitoring' the Anthem situation. State authorities in California ... are also investigating the reported rate hike." A WellPoint spokeswoman "said the company had received the letter and was reviewing it" (Heavey, 2/8).