Feinstein pushes to cancel Anthem rate hike

[Newsjock]

Source: San Francisco Chronicle

U.S. Sen. Dianne Feinstein called on WellPoint Inc. Wednesday to cancel plans to raise premiums by as much as 39 percent for individual Anthem Blue Cross policyholders in California in light of the health insurer's 51-percent first-quarter profit increase.

... WellPoint, the parent company of Anthem Blue Cross, said Wednesday its first-quarter net income jumped to $876.8 million, or $1.96 a share, from $580.4 million, $1.16 per share, for the same quarter a year earlier. The insurer attributed the gains in part to a less severe flu season than anticipated.

... "At a time when so many Americans are struggling to make ends meet in a tough economy, WellPoint is reaping a 51 percent increase in profits while simultaneously raising premium rates on hardworking California families by up to 39 percent. This is unconscionable," Feinstein said in a statement. "WellPoint's actions are a textbook example of the profits-above-all-else Wall Street mentality that has caused major hardship for millions of average Americans."

... The state has little control over insurance rates other than to ensure that carriers spend at least 70 cents of every dollar on medical benefits. In Wednesday's financial results, WellPoint said it spent 81.8 percent of first-quarter premiums on medical care, down from 82.5 percent a year earlier. The company did not release figures specific to Anthem Blue Cross.

Read more: http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2010/04/29/BANB1D6CN3.DTL&tsp=1

[HereSince1628]

1. Yes, when administrative salaries get counted as medical costs

They probably pay 81.2% which obviously begs the question of how a medical cost is defined. It really shouldn't include the costs of administration of bill verification and payments to providers

[elias7]

2. 43% here in new hampshire

unconscionable, but little recourse...