Anthem Blue Cross, California’s largest health insurer, announced its plans to raise premiums up to 39%. This news prompted HHS Secretary, Kathleen Sebelius to write a letter in protest:
Says Sebelius, “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.”
In addition, Sebelius unveiled a report on insurance companies who have requested premium increases across the country. Here are some highlights of that report:
- Anthem of Connecticut requested and increase of 24% last year, which was rejected by the state.
- Anthem in Maine had an 18.5% premium increase rejected by the state last year as being “excessive and unfairly discriminatory” – but is not requesting a 23% increase for this year.
- In 2009, Blue Cross Blue Shield of Michigan requested approval for premium increases of 56% for plans sold on the individual market.
- Regency Blue Cross Blue Shield of Oregon requested a 20% premium increase.
- UnitedHealth, Tufts and Blue Cross requested 13-16% rate increases in Rhode Island.
- Rates for some individual health plans in Washington increased by up to 40% until Washington state imposed stiffer premium regulations.