Congress Probes Anthem Blue Cross
Congress opened an investigation Tuesday into Anthem Blue Cross’ rate increases in California as President Obama cited the company’s premium hikes — some as high as 39% — in his bid to pass national healthcare legislation.
The House Committee on Energy and Commerce and its Subcommittee on Oversight and Investigations announced they are examining the increases, which are set to take effect March 1. Anthem is the state’s largest for-profit insurer and a unit of Indianapolis health insurance giant Wellpoint Inc.
Committee Chairman Rep. Henry Waxman (D-Beverly Hills) and subcommittee Chairman Rep. Bart Stupak (D-Mich) asked WellPoint’s chief executive, Angela F. Braly, to appear at a Feb. 24 hearing of the subcommittee in Washington. They requested that she provide a detailed explanation of the reasons for the rate increases, which have enraged policyholders.
A WellPoint spokeswoman said the company is reviewing the request. Anthem has defended its increases as necessary to meet growing healthcare costs.
Anthem has an estimated 800,000 customers with individual policies that are not part of group coverage. The company would not say how high the rates are or how many customers are affected. Brokers and policyholders said they are facing increases of 30% to 39%, the largest they can recall.
Obama told reporters in Washington on Tuesday that the Anthem rate hikes spoke to the need for healthcare reform.
“If we don’t act, this is just a preview of coming attractions,” Obama said. “Premiums will continue to rise for folks with insurance; millions more will lose their coverage altogether; our deficits will continue to grow larger. And we have an obligation — both parties — to tackle this issue in a serious way.”
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