Yesterday, California Insurance Commissioner (and Republican gubernatorial candidate) Steve Poizner appeared on Fox Business News “Happy Hour” confirming that he is investigating proposed rate increases for 800,000 individual policy holders after California members received notices that their rates would increase up to 39%. Poizner is asking Wellpoint, Anthem’s licensee in both California and Colorado, to delay increases until May 1 while an independent actuary could review the increases.
Anthem’s move has been outrageous enough to even attract the attention of the Obama Administration who has also asked for justification.
Readers may recall that I had written about Colorado increases on December 10. In their letter to me on November 30, they had indicated that “it is necessary to adjust our health care coverage rates to cover the escalating cost of health care.” In reporting by the LA Times, it now seems that Anthem is placing a portion of the blame on the weak economy leading many people in good health to forgo coverage leaving those with significantly greater medical needs in its insured pool. If California is like Colorado, my visit to the Colorado Department of Regulatory Agencies (DORA) would indicate that Anthem also modified their age groupings that contributed to higher rate increases to some (if not many) members. Another day, another story.
In Poizner’s discussion on “Happy Hour” he identified three primary factors that need to change, (i) introduction of interstate competition, (ii) go after insurance fraud aggressively, and (iii) introduction of electronic medical records. Sounds that some people are starting to get the message.
While Colorado has significantly fewer individual policy members with Anthem compared to California, maybe our regulator should get on the bandwagon and ask Poizner for permission to re-issue his letter under her signature.
Come on Commissioner Morrison, wouldn’t an hour investment be well worth the protection of public interest?
BA
