Anthem Blue Cross postpones California rate hike

The Los Angeles Times: - "Under pressure from state regulators, Anthem Blue Cross has agreed to postpone its controversial rate increases of up to 39% for individual health insurance policies set for March 1. In an unusual conference call, California Insurance Commissioner Steve Poizner said Anthem executives told him Saturday morning that its March rate hike would not take effect before May 1 for 800,000 individual policyholders in the state" (Lifsher, 2/13).

The New York Times: "Mr. Poizner said his department needed time to determine whether the increase would violate state regulations that require insurers to spend at least 70 percent of premiums on health claims, rather than on overhead and profit. Absent that, he said he had no authority to reduce Anthem's rates. The Obama administration criticized the company relentlessly, arguing that the increases demonstrated the need for the health care overhaul now stalled in Congress."

"Mr. Poizner, a Republican candidate for governor, said in a conference call Saturday that he had hired outside actuaries to review Anthem's rate filing ... Anthem's parent company, WellPoint Inc. of Indianapolis, asserted in a statement that its new rates would comply with the law" (Sack, 2/13).

KCBS reports that Wellpoint "said the planned rate increases reflect soaring medical costs and an exodus of healthy customers from its ranks. ... If the company is found not to be in compliance, Poizner has two options. 'I can direct Blue Cross to reduce their prices. If they refuse to reduce prices, then I have the ultimate capability and authority to withdraw the license that they have to actually sell these products'" (Seelig, 2/13).

The Associated Press: "Anthem's plan comes as more people lose employer-sponsored health insurance — and more insurers start raising rates on individual customers. ... Consumers in at least three other states who buy their own health insurance are getting hit with premium increases of 15 percent or more. The Anthem Blue Cross plan in Maine is asking for increases of about 23 percent this year for some individual policyholders. Last year, they raised rates up to 32 percent"  (Johnson, 2/13).

Previous related news summaries:

Administration Rejects Anthem Blue Cross' Defense Of Premium Hike (2/12)

WellPoint Defends 39% Premium Hike In Letter To Sebelius (2/11)

Congress To Investigate 39 Percent Premium Hike By California's Anthem Blue Cross  (2/10)

Anthem Blue Cross 39 Percent Rate Hike Draws Ire Of Federal, Calif. Regulators (2/9)

Anthem Blue Cross Of California Raises Rates As Much As 39 Percent (2/5)