According to the Los Angeles Times, on Thursday the parent of Anthem Blue Cross attempted to justify large premium increases for individual policies, however, “critics – including the Obama administration – voiced skepticism.” The Los Angeles Times reports, “In a letter to the administration, health insurance giant WellPoint Inc. of Indianapolis said that increases of as much as 39%, set to take effect March 1, reflect soaring medical costs and an exodus of healthy consumers from its ranks.”
Anthem Blue Cross’ parent says that less than a quarter of Anthem customers will suffer from the rate increases of 35-39%. Company executives say the average rate increase will be about 25%, while some people will see rates actually fall. Brian Sassi, who oversees individual policies throughout the nation for WellPoint, referred to the 39% increases as “the worst-case scenario,” and went on to say, “We appreciate that that is a sizable increase . . . but it is not the majority of the people.”
Health And Human Services Secretary Kathleen Sebelius, who predicted that the rate hikes would force some customers to join the millions of uninsured Americans or cut their benefits, criticized the company’s justification. Sebelius said, “High healthcare costs alone cannot account for a premium increase that is 10 times higher than national health spending growth.” The Los Angeles Times reports that, “President Obama also has singled out Anthem, citing its premium increases as a reason for Congress to pass healthcare reform.”
Do you think WellPoint’s explanation justifies the rate increases?
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