As CA Officials Investigate, Anthem Blue Cross Delays Rate Hike
In response to the uproar over their announcement of 39% rate hikes, Anthem has announced they will delay the rate increases until after California officials complete their investigation:
Anthem Blue Cross will postpone by two months a massive rate hike that was set to take effect March 1 pending the results of an outside review launched last week at the behest of California Insurance Commissioner Steve Poizner.
The increase, sharply criticized by a top Obama administration official, could impact as many as 800,000 California customers who purchased individual premiums to pay 39 percent more for coverage.
In a conference call with reporters Saturday, Poizner, a GOP gubernatorial candidate, said he reached an agreement with Anthem Blue Cross to delay the start of the rate hike until May 1.
"These are huge, massive rate increases, very concerning to me and my team," Poizner said.
In a letter he sent last Monday to Angela F. Braly, president and chief executive of Anthem's parent company, WellPoint, Inc., and Larry C. Glasscock, WellPoint's chairman, Poizner said the an "outside actuary" will determine if the rate hikes are excessive and if Anthem Blue Cross was spending 70 cents of every dollar on premium medical care as required by state law.
"If we find that their rates are excessive, I will use the full power of my office to bring these rates down," Poizner’s letter stated.
He told reporters Saturday that the actuaries were "instructed ... to review the rates with a fine-tooth comb" and if "they find that these rate increases were unwarranted, I will immediately take action to get Anthem Blue Cross to follow the law and lower their rates."
"If we find that their rates are excessive, I will use the full power of my office to bring these rates down," Poizner’s letter stated." How about bringing down the insurance company.
as there isnt another commodity in california that has been forced into a 39 percent increase....how can the rate hike not be excessive?
poizner is just afraid that this will hurt his chance at getting the nom
those rates will go up....watch and see
probably not by 39 percent....probably closer to 20...which is still highway robbery
There is no better proof that for-profit health insurance = major fail.
My Anthem premiums were increased by 36% last November and my husband's by 46%. There was no delay for our increases. If this investigation stops these newest increases, I'm going to do whatever I can to get my premiums reduced retroactively - they were increased under the same lame justification.
nothing
its an election year
and why the dems dont use this as a very good example as to why medicare for all should be the rule, is beyond me
it isnt about free enterprise....its about the fact that people dont have real choice....so these grave robbers can easily stick it to them
Got THAT right...
serves them right!
It's the recession stupid. They claim the reason for the rate hike is because of the recession and people are going to less expensive plans. Biggest bunch of bullshit I've ever heard. The reason people are going to less expensive plans is because Anthem is pricing them out of the good plans. So they make up the money by raising the price of the shitty plans. Crooks and Liars. I hope the people getting the 39% rate hike are the teabaggers.
is intended to be a factual statement
pricing? Maybe they've cooked their books, and they're entitled to 79%. They are learning from the credit card companies. Google this topic. Good reading.
I thought they were required (by law), as having a fiduciary responsibility to their shareholders, to maximize profits?
Are they going to alter their books or is it possible for a government entity to make them break the law?
Interesting turn of events, for which I find hard to reconcile.
Maybe they can even make them take a 39% cut while they're at it? ;)
I imagine some day-traders took a hit ;)
Study the symptoms not the virus...
If it was to maximize, they could not get the outrageous bonuses they take. Among other things. One little word can make all the difference. That's why most legislation is so wordy. Odds are no one will notice that "one little word." The weasels have this down to a fine art.
They can give themselves, as big a bonus, as shareholders will allow, I believe?
Study the symptoms not the virus...
When everyone realizes what a big scam the corporate culture is, boy are people going to be pissed. Ask yourself this: Would shareholders allow hundreds of millions of dollars to be given away as bonuses to a few employees or would they want the money paid to themselves as premiums? The latest round is that some will be paid in restricted stock units, thus giving the CEO's, etc. shares of stock and making them shareholders. Will they get to make decisions about how big their bonuses will be when and if shareholders get to decide this matter? Right now, bonuses are a cost of doing business. It is profit that becomes non-taxable for the business, and barely taxable for the recipients. Sweet, huh?
"The shareholders don't approve the bonuses"
Who does?
Study the symptoms not the virus...
.....which is why health insurance should be non-profit. Profit-taking is in direct conflict with paying for needed medical care: the more they pay for medical care, the lower the profits so the obvious incentive is to NOT pay for medical care. This is a travesty.
Is a 2.7 billion 4Q '09 profit not maximized enough? It's a record (as was their total '09 profit). So how is the govt making them break the law?
"Someday somebody related to some of these sufferers, these victims, these collaterally damaged souls, may try to kill you. And I have to tell you, I think you’ll have it coming." - Christopher Cooper
..."or is it possible for a government entity to make them break the law?"
I say, (someone will just create a new regulation) ...that allows Anthem to "break the law" (as is typical of "regulations")
Who knows? maybe Burntbanky will "bail them on" ...and print em' some cash like he does for other big companies...?
audit-prosecute-incarcerate
As if Poizner will really care afterwords, if he ends up being elected.
wellpoint is not raising clients rates
because of possible future costs to them,
but are raising the rates to have more
capital to spend on lobbying by using
customer premiums......that is just too obvious
Anthem proposed a 23% rate increase after having raised last year. a family of four could be charged up to $1,876 per month if the proposed rates are allowed to take effect in July.
Consumer groups planning big rallies at two public hearings on the rates, on Feb. 22 and 24.
http://www.msnbc.msn.com/id/35374644/ns/healt...
Don't conservative believe they are also vulnerable to this - they are one job loss away.
to be offered to me across state lines. We already have tort reform in Texas, so I expect to get an $ 1,800 + monthly health plan for a couple of pesos here.
"That's fu*#ing retarded."
Big City Mayor
right on
solid gold Rolling Blackout electric juice.
"That's fu*#ing retarded."
Big City Mayor
instead of allowing him to die after a civil trial, Anthem would not have attemtped this terrorist attack.
"That's fu*#ing retarded."
Big City Mayor
Maybe that's the meme we'll hear from Palin, Beck, Hannity, O'Reilly or any tea-bagger in defense of these increases.
went to their mailboxes, took the bank making them latest low interest promo credit card up on their offer, used the card to pay their Anthem Premium, then refused to pay the credit card bill and instead offered the bank the negative equity in their house?
"That's fu*#ing retarded."
Big City Mayor
Its $56/month in BC Canada for great healthcare. The only reason we got this wonderful health care is because the evil "socialists" got a lot of votes in one election. Our two business mens parties got scared and threw us a bone. The reason u got squat around health care is because u only have the two biz mens parties and no effective voice for the people. Your government is totally under corporate control. Learn from the French and take your concerns to the street if u want change.
It's unfortunate the FDIC didn't jack-up the rates for the banks.
Indecent exposure? ;)
People die while banks morph... This is a forward looking statement only...
Study the symptoms not the virus...
WellPoint got the feds to reclassify them a financial services firm.
Why? They wanted to open a bank. Why? To manage the money coming in from things like Health Savings Accounts that go with high deductible insurance.
This was an article in the LA Times as part of a series on health care:
Insurers see banking future
Many have found that managing customers' money is more profitable than underwriting medical coverage.
Excerpt:
The Federal Reserve Board eventually agreed that the company's core insurance business could be considered financial services. But what about its mail-order pharmacy and its program for managing chronic diseases, which was overseen by WellPoint doctors and nurses? Wasn't that healthcare?
WellPoint finally convinced the Fed that those activities were merely "complementary" to its main business -- financial services. It pledged to limit them to less than 5% of total revenue.
That a medical insurer would agree to keep a lid on healthcare expenditures so it could get approval to open a bank illustrates a fundamental change in the industry: Insurers are moving away from their traditional role of pooling health risks and are reinventing themselves as money managers -- providers of financial vehicles through which consumers pay for their own healthcare.
http://articles.latimes.com/2008/oct/22/busin...
I've noticed a similar market admiration related to the Citigroup move.
"Citigroup was formed from one of the world's largest mergers in history by combining the banking giant Citicorp and financial conglomerate Travelers Group on April 7, 1998."
Thanks Mr. Bill and F-U Phil Gramm! :-/
Study the symptoms not the virus...
Wellpoint. The next AIG. Their motto: "We're too big to fail too!"
"Someday somebody related to some of these sufferers, these victims, these collaterally damaged souls, may try to kill you. And I have to tell you, I think you’ll have it coming." - Christopher Cooper
AIG[FP]
Study the symptoms not the virus...
70% of every premium dollar goes to medical care. There it is in black and white - we pay 30% to be abused for no good reason by insurance companies....
70% of every premium dollar goes to medical care. There it is in black and white - we pay 30% to be abused for no good reason by insurance companies....
I may be wrong but it's my understanding that the VA and Medicare operate at about 2% overhead. My Dad is on VA and loves it my MOM is on Medicare and loves it! She just had an anyuerism sp, repaired and she is doing great at basically no out of pocket cost....go figure they love it. But the big insurance banks ned 30% just to get by. AARRGGHH if I'm missing something here let me know cus I guess it's more important for investors to make lots of cash while millions of Americans just have to hope for the best and oh well. Spit
The love you take is equal to the love you make. John Lennon Paul Mc Cartney
difference. And yet they say we cannot afford Medicare for all. How can we NOT afford it? There is no legitimate excuse for keeping these greedy thieves in business. Read MtnWoman at 17:06. When you wrote "insurance banks" you nailed it. There is never enough for these people. Never.
The difference is that with M/C for all, the revenue needed to run it would come from increased witholding, ideally from those who are not paying now, as opposed to employers and private citizens footing the bill for the outrageous premiums we pay now.
I and my wife currently pay nearly 4K per year for our "employer provided" health insurance (bad HMO), not including the $1000 deductible. It is obvious that if this were switched to a national system, the amount taken out of our earnings would be a hell of a lot less than 4K/yr.
"Someday somebody related to some of these sufferers, these victims, these collaterally damaged souls, may try to kill you. And I have to tell you, I think you’ll have it coming." - Christopher Cooper
when you decide to play the game by the rules. America 1- Insurance companies 346,819,381,572.
given the climate in America these days, that the CEO of a health insurance company would try to do something like this. Did he think it would go unnoticed? The guy should be fired for being a dumbass.
Some of the stupid things that companies do today really amaze me. I can only imagine the discussions their 'leadership' team had over this topic; 'it's a chance to raise revenue; the public won't even notice'.
premiums. Does that give you pause?
in Woodland Hills is directly across the street from the AIG building, which they removed the name off off incidentally cause people were coming in pissed. I was looking at them today and couldn't help but thinking in these 2 buildings are a bigger threat to this country then Bin Laden could ever hope to be.
until after California officials they've ALSO paid off complete their 'investigation'.
NOW!
Republicans are liars and simply cannot be trusted.
A chunk of it is for advertising. For example ...
Kaiser Permanente's Rose Bowl Float this year was named "Magnificent Tales of Health" and it received the title of "Most Spectacular" in the over-fifty-feet class. The Tournament of Roses organization says that floats for its annual parade cost a minimum of $200,000. I would bet that Kaiser's float cost $1M at least. That money could have paid for a lot of patient health care. Kaiser also sponsors glitzy ads on commercial television. In contrast, single payer health care insurance does not require expensive advertising campaigns.
P Von Behren
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