Insurance regulators in California have asked Anthem Blue Cross to delay their controversial rate increases of up to 39% for individual policies. Most recently, the Obama administration called on the company to justify its rate hikes, calling the increases ‘alarming; at t time when subscribers face skyrocketing healthcare costs.
Anthem Blue Cross, which is California’s largest for-profit insurer, said its costs have been driven up in part because the weak economy has led many people in good health to forgo coverage, leaving those with greater medical needs in its pool of customers.
"We regret the impact this has on our members," it said of its rate hikes. "It highlights why we need sustainable healthcare reform to manage the steadily rising costs of hospitals, drugs and doctors. As such, it is important to go back to the beginning and get healthcare reform done right."
The Obama Administration’s Health and Human Services Secretary Kathleen Sebelius wrote to company President Leslie Margolin."With so many families already affected by rising costs, I was very disturbed to learn through media accounts that Anthem Blue Cross plans to raise premiums for its California customers by as much as 39%. These extraordinary increases are up to 15 times faster than inflation and threaten to make healthcare unaffordable for hundreds of thousands of Californians, many of whom are already struggling to make ends meet in a difficult economy."
About EQUITIES:
Since 1951, EQUITIES Magazine has been a leading media company providing business editorial content designed to serve the needs of business leaders, professionals, institutional investors and retail investors. We are focused on business and the business of making money, not on lifestyle subjects. We publish original reporting in print and on our website, as well as select content at www.nasdaq.com. For 28 years we have hosted our own branded investor conferences that connect public company CEO’s with our loyal readers in the investment community.
Sign up for a free one-year subscription to EQUITIES Magazine
