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Kathleen Sebelius, Secretary of Health and Human Services, is adding her voice to the growing list of consumer complaints about Anthem Blue Cross hiking insurance rates in California by as much as 39 percent for individual policy holders.
"Your company's strong financial position makes these rate increases even more difficult to understand," Sebelius wrote Monday. "As you know, your parent company, WellPoint Incorporated, has seen its profits soar, earning $2.7 billion in the last quarter of 2009 alone. I believe Anthem Blue Cross has a responsibility to provide a detailed justification for these rate increases to the public."
State insurance commissioner Steve Poizner has called for an audit.
"State law requires that insurers spend at least 70 cents of every dollar of premium on medical care," Poizner said in a statement. "I have instructed my department to hire an outside actuary to examine their rates line by line to ensure they are complying with this state law. If we find that their rates are excessive, I will use the full power of my office to bring these rates down."
Blue Cross did not immediately respond to a request for comment Monday.
http://healthyliving.freedomblogging.com/2010/02/08/blue-cross-premiums-called-out-by-kathleen-sebelius/16017/
But to those about to be slammed with the increase, I wouldn't get too excited by all this government action.
In California, the Insurance Department can regulate the premium charges on home and automobile insurance. Not so for health insurance. Regulators can, technically, 'oversee' the increased cost but they have no power whatsoever to control these charges. Thus, it is anyone's guess what it means to 'oversee' when you can't regulate.
As for Secretary Sebelius, while she can write tough letters letting us know the Obama Administration cares, she too has no authority to regulate these premium charges.
http://trueslant.com/rickungar/2010/02/09/blue-cross-raises-california-health-care-premiums-39/