Anthem Blue Cross’ parent called off a meeting with investors that was scheduled for next week to “review its 2010 financial outlook so that executives can prepare for a congressional hearing into its large rate hikes for individual policyholders in California,” states Duke Helfand from the Los Angeles Times. WellPoint Inc. Chief Executive Angela F. Braly has been called to testify next week about the future rate hikes of as much as 39%.
WellPoint has postponed the planned premium increases until May 1, “amid criticisms from consumers, state officials, members of Congress and the Obama administration,” reports Helfand. WellPoint blames the drastic increases on the rising medical costs, and said less than a quarter of individual policyholders would actually suffer from rate increases of 35% to 39%.
Helfand reports, “”The Investor Day program was canceled in order to allow the company to prepare appropriately for the hearing,” WellPoint said in a statement.” WellPoint went on to say that, “The company is confident that its rates were established consistent with actuarial principles and state law, and welcomes the opportunity to discuss the underlying rise in health costs and actuarial dynamics which resulted in the need to increase individual health insurance rates.”
What do you think about WellPoint canceling the investor meeting?
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