By GottaLaff

I got this via an e-mail this morning:

Commissioner Poizner has asked Anthem Blue Cross to wait on those rate increases, some that could be as high as 39 percent, until our actuary can take a look at their books.

Contained in the release is a copy of the letter Commissioner Poizner sent to the WellPoint brass.

I’d seen a piece about this in the L.A. Times, but the actual letter is worth a read:

News: 2010 Press Release

For Release: February 8, 2010

Media Calls Only: 916-492-3566

Insurance Commissioner Poizner Fights for Consumers, Calls for Postponement of Health Insurance Rate Increase for Anthem Patients and Policyholders

California Insurance Commissioner Steve Poizner, responding to a dramatic proposed rate hike by WellPoint’s California affiliate, Anthem Blue Cross (Anthem), today called on WellPoint executives to postpone the rate increase, allowing the California Department of Insurance proper time for an independent actuarial review of the proposal.

“As a public benefit and to ensure that policyholders are not forced into financial hardship as a result of Anthem’s proposed rate increases,” said Commissioner Poizner, “I am asking that Anthem agree to postpone those rate increases until the Department’s independent actuary completes his review.”

Below is the text of the letter:

February 8, 2010

Ms. Angela F. Braly
President and Chief Executive Officer
WellPoint, Inc.
120 Monument Circle
Indianapolis, IN 46204

Mr. Larry C. Glasscock
Chairman of the Board
WellPoint, Inc.
120 Monument Circle
Indianapolis, IN 46204

Re: Anthem Blue Cross Individual Health Insurance Rates in California

Dear Ms. Braly and Mr. Glasscock:

WellPoint’s California affiliate, Anthem Blue Cross (“Anthem”), has submitted to the California Department of Insurance (“Department”) proposed rate increases of as much as 39 percent for individual health insurance sold in this State. Anthem announced it will implement the increases on March 1 of this year.

As you know, this is a time of unprecedented economic distress for consumers in America. The premium increases Anthem proposes for critically needed individual health insurance could have a devastating financial impact on hundreds of thousands of its policyholders in California. The Department has received numerous complaints from irate Californians describing how Anthem’s proposed rate increases would cripple them financially.

At my direction, the Department is retaining an independent actuary to analyze Anthem’s proposed rate increases. The actuary will carefully evaluate Anthem’s submissions to ensure that Anthem’s actuarial assumptions are justified and that Anthem pays out at least 70 cents of each premium dollar received for benefits, as required by California law. If the independent actuary concludes that Anthem’s assumptions are unjustified and that Anthem will pay out less than 70 cents of the premium dollar for benefits, I will take immediate action to stop Anthem from charging the increased rates to California consumers.

As a public benefit and to ensure that policyholders are not forced into financial hardship as a result of Anthem’s proposed rate increases, I am asking that Anthem agree to postpone those rate increases until the Department’s independent actuary completes his review. Specifically, I ask that Anthem postpone implementation of its rate increases until May 1, 2010. If the independent actuary concludes that Anthem’s rates are not actuarially justified and do not meet the 70 percent loss ratio requirement, I will take all legal action available to me to stop the rate increase.

Please let me know by February 15, 2010 whether Anthem will agree to protect consumers in California by postponing its individual health insurance rate increases until May 1, as discussed above.

Sincerely,

Steve Poizner

Here’s an excerpt from the Times article:

In a rare step, the Obama administration called on California’s largest for-profit insurer to justify its rate hikes, saying the increases were alarming at a time when subscribers face skyrocketing healthcare costs.

In a letter to Anthem’s president, Health and Human Services Secretary Kathleen Sebelius voiced serious concern over the higher premiums, which go into effect March 1 for many of the insurer’s estimated 800,000 individual policyholders.

This hike is outrageous. Speaking for myself, we can barely make ends meet because of our gigantic insurance costs. I can’t even imagine those who have it even worse than we do. And I shouldn’t have to.

Yes, Rushpublics and a few so-called Dems, let’s just maintain the status quo, or better yet, cozy up to Big Insurance even more. That’ll win you hearts, minds, and votes.