Congress opens probe into Anthem Blue Cross rate increases

[jaysunb]

Source: L.A Times

Congress opened an investigation Tuesday into Anthem Blue Cross' rate increases in California as President Obama cited the company's premium hikes -- some as high as 39% -- in his bid to pass national healthcare legislation.

The House Committee on Energy and Commerce and its Subcommittee on Oversight and Investigations announced they are examining the increases, which are set to take effect March 1. Anthem is the state's largest for-profit insurer and a unit of Indianapolis health insurance giant Wellpoint Inc.

Committee Chairman Rep. Henry Waxman (D-Beverly Hills) and subcommittee Chairman Rep. Bart Stupak (D-Mich) asked WellPoint's chief executive, Angela F. Braly, to appear at a Feb. 24 hearing of the subcommittee in Washington. They requested that she provide a detailed explanation of the reasons for the rate increases, which have enraged policyholders.

A WellPoint spokeswoman said the company is reviewing the request. Anthem has defended its increases as necesssary to meet growing healthcare costs.



Read more: http://www.latimes.com/business/la-fi-anthem10-2010feb10,0,2234973.story

[napi21]

1. GREAT! It's about time! I think the should add the rest of them to the investigation/ nt

[CatWoman]

3. I agree!!

these people are nothing but gangsters.

[salguine]

5. Oh, please. Do you really think this is anything other than for show? You don't

honestly think this is anything other than a *wink wink* investigation, do you? I wish I had your faith. They're probably only meeting to negotiate the next round of "campaign contributions".

[napi21]

7. The hearings will put them in the headlines. THAT'S what's

important.

Will it cure anything? I don't know, but it sure will make a lot of people hate them mopre than they already do.

If at the hearings the Pubs side with the ins. guys, it will also be another thing to add to the list of reasons not to vote Pub!

[dflprincess]

28. Especially, as it seems, the "strongly worded letter" has already been sent n/t

[Lil Missy]

2. They must be planning bigger bonuses this year. n/t

[Mz Pip]

9. Planning on making contributions

to politicians opposing any HCR.

That takes money; all those ads and donations.

No wonder they raised their rates.

[winstars]

4. THEY GOT ME!!!!

It's rare one the news actually is about you but I am a Anthem individual heath ins person. I got a thingy in the mail a few days ago that my monthly bill was going from $225.00>>>>>$265.00 I am not a math whiz so maybe someone here can figure the % of the increase!!! This after raising it last year from $190.00. My deductible is $3500.00!!!!!!!!!!!!!!!! TWO PRICE INCREASES DURING A FUCKING TIME THAT I NEVER FUCKING MADE ANY CLAIMS OR USED MY INS!!!!!!

Maybe something in Congress will-----yeah right...

[kentauros]

14. The way to calculate it yourself is to take the difference between the two

265 - 225 = 40

and divide it by the original amount: 40 / 225 = 17.78%

225 - 190 = 35
35 / 190 = 18.4%

Although your percentage actually went down this time around, it's still way too high to justify their costs. From your first rate of $190 to $265, that's a 39.5% increase in what, about a year? That might be the 39% they're talking about...

[GiveMeFreedom]

15. self delete, but gave you a DU-V heart! n/t

[bluestateguy]

6. Oooooh! Uh oh. A hearing!

They must be shivering up there at Blue Cross.

[tranche]

8. The only thing that's been probed is Anthem customers.

Can't get too excited about a few stern words.

[jtrockville]

10. There's nothing illegal about raising rates.

In fact, it's their fiduciary duty to maximize profits for shareholders. They have no obligation to keep rates low for their policyholders.

[Jim Sagle]

16. Bull fucking shit. As a health insurance company, they enjoy antitrust exemption.

That in itself annihilates your odious talking point.

[GiveMeFreedom]

17. Maybe he forgot the

:sarcasm: Smilie ?

[Jim Sagle]

20. That would nullify the fine job he does as a five buck an hour DLC hogwash dispenser.

;)

[jtrockville]

24. An anti-trust exemption means they're not subject to price-fixing laws.

It doesn't change their obligation to shareholders to maximize profit.
It doesn't mean they have any obligation to provide affordable products/services to policyholders.

Nothing in the law prevents them from jacking up their prices in order to increase profit, which is why this inquiry is an enormous waste of time and resources.

[Jim Sagle]

25. My apologies to you. I totally misread your post as Randian rubbish.

As to the inquiry, it COULD be of use if it led to real health insurance reform. And it could in fact be used to drum up support for that. If it were OUR Congress.

[jtrockville]

27. Well, it IS Randian Rubbish. But that's what we're stuck with.

I do hope exposing this rubbish drums up support for reform.

[MannyGoldstein]

18. Nothing Illegal With Destroying Their Business With A Public Option, Either

Any day now...

[jtrockville]

23. That's right. We don't owe the industry a captive market.

In fact, we don't owe the industry anything.

[eridani]

11. So, if they decide that Anthem has fucked us over--

--exactly whatthehell do they intend to DO about it?

[classysassy]

12. We need new regulations

to slow down the greed that is so rampant in america.

[GiveMeFreedom]

13. Well, well....not!

Anthem has defended its increases as necesssary to meet growing healthcare costs.

More like their growing profit intake.

HMO's add nothing to the care of people in need. They are the sharks that circle the sick and dying. I fucking hate what's going on in health care or more to the point health insurance organizations. There is no other reason for their existence than to make money, they do not research, invent, create, implement anything that adds to medical procedures, research, or new drugs. And to top it all off, their CEO's are not medical professionals (usually?) they are business managers who seek to make money at all costs. Fucking Bastards!!

[elias7]

19. Sounds like a giant game of chicken

first, legislature threatens to pass public option, insurance co responds with inordinate rate increase, schwarzenegger stuck in between, now feds push back...

[zoff]

21. Growing healthcare costs = CEO/Management Pay hikes and bonuses

Costs my a$$. Congress should issue a subpoena.

[greenbird]

22. I watch this with rapt interest.

Blue Cross raised ours 39% last fall. I contacted my congressperson, Brian Higgins of New York. We were not able to pay that much of an increase and now have joined the ranks of the uninsured (for the first time in our adult lives). Both in our mid-50s. Congressman Higgins' office has yet to respond; it's been 6 months now. I'll be watching this, but I'm sceptical.

[shanti]

26. profiting from people's ill health

should NOT be allowed! :mad:

[Blue_Tires]

29. good to see, but i don't think any real action will come of this...

[pinniped]

30. The outcome will be identical to oil company hearings.

NOTHING.

These congrassholes were nowhere to be seen when the big banks were sending out millions of rate increase letters a year prior to the new so-called credit card industry rules.

These crooks will not forget who funds their campaign and way of life.

[jobwithout]

31. Nothing but a show

These Congressmen know there is nothing they can do about this yet they put on this ridiculous show to show how tough they are. The Blue Cross Execs could get up there and say "yes we raised rates and so what about it, we are regulated by the states and you have no jurisdiction so go blow yourself". And guess what...they would be right. This is more about putting on a show so they can go back home and say "see we did something..I told the exec how pissed I was at him and....." At the end of the day its just a bunch of mindless bullshit.

[indypaul]

32. And have then bring along their board of directors with them

let's really probe the activity of this dynasty.