Obama Administration steps up scrutiny of insurer WellPoint

[babylonsister]

Administration steps up scrutiny of insurer WellPoint

By David S. Hilzenrath
Thursday, May 6, 2010


The Obama administration escalated a long-running battle with one of the nation's largest health insurers Tuesday night, calling on state governments to scrutinize any rate increase sought by WellPoint.

In a broader effort to combat "unjustified" premium increases, the administration also asked states to ensure their regulators have the authority to review rate hikes before they take effect.

Health and Human Services Secretary Kathleen Sebelius made the request after WellPoint withdrew a proposal to raise rates by as much as 39 percent for Californians with individual policies. California regulators determined that the proposed increase was based on erroneous assumptions.

The planned WellPoint rate increase had become a flash point in the final stages of the health-care debate, and the administration invoked it as an argument for the legislation.

"In light of this recent finding, I urge that, to the extent you have authority to do so, you re-examine any WellPoint rate increases in your state to determine whether any mistaken assumptions similar to those made in California were made in your state," Sebelius said in a letter to governors and state insurance commissioners. "Even small errors can mean unaffordable premiums for policyholders."

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http://www.washingtonpost.com/wp-dyn/content/article/2010/05/05/AR2010050501980.html