Thursday, February 11, 2010

WellPoint blames economy, medical costs for Calif. rate hikes; HHS Secretary unconvinced

Health insurer WellPoint is blaming the Great Recession and rising medical costs for its planned 39 percent rate increase for some California customers of its Anthem Blue Cross plan.

But Health and Human Services Secretary Kathleen Sebelius isn't buying the explanation proffered in a letter delivered to her Thursday.

Sebelius said "it remains difficult to understand" how premium increases of that size can be justified when WellPoint Inc. reported a $4.75 billion profit in the last quarter of 2009. She also noted that the premium increases are 10 times higher than the increase in national health care costs.

WellPoint's letter:
Click here.

Source: AP News

1 comment:

Anonymous said...

Yep the Health care companies are raking it in, still.

That is why health care reform is needed so bad.