State Healthcare Advocate Kevin Lembo today called on Anthem Blue Cross and Blue Shield of Connecticut to withdraw its most recent rate filing with the Department of Insurance. The rate filing would allow Anthem to raise rates on customers in the individual market up to a staggering 30% or more.
“The audacity of Anthem’s request and insensitivity to the families of Connecticut is troubling,” Lembo said. “In light of the terrible economic condition of our country, state and, most importantly our families, all health insurers should be held to a zero increase in rates.”
If Anthem and its corporate parent, WellPoint, refuse to withdraw, Lembo encouraged Insurance Commissioner Thomas Sullivan to summarily reject the filing.
If Commissioner Sullivan refuses to reject the filing, Lembo called on the Governor to use her Executive authority to protect the citizens from this outrageous action by Anthem, and to freeze all health insurers at their current approved rates. “Someone with power needs to protect the people,” he said.
In the spring of 2008, WellPoint CEO, Angela Braly attempted to calm investors after Anthem missed its first quarter earnings by a wide margin. One strategy the Anthem parent company chose to fix “the problem,” was to increase premiums. The increase in premiums has, however, led to a loss in customers and a continued, devolving need to improve the plans bottom-line.
WellPoint CEO Braly has faired far better than the company, earning more than $9.8 million in addition to a very generous package of stock options, use of a private jet and free legal services related to her employment agreement.
Lembo commented, “What an odd set of events we’ve experienced over the last few months. While simultaneously pledging their cooperation to the White House on health care reform, the large commercial insurance companies continue their campaign of profiteering across the states. It’s almost as if they are intent on increasing the base profits of their business units so that future concessions in national reform will not impact their bottom-line.”
Lembo pointed out that File-and-Use (a process where insurance companies submit their rates to the Insurance Department and, absent a rejection or modification, may simply use the new rates) must be abandoned in the next legislative year Rate hearings must be required and a higher standard of justification must be adopted.
Lembo added, “ I am calling for the creation of an independent oversight body to conduct rate hearings and make final judgments on requests for premium increases. I will bring a plan to the legislature for their consideration in January. In the interim, the insurance companies must be forced to stand-down.”
