Friday, April 30, 2010

No big rate hike for Anthem policyholders

Insurance giant Anthem Blue Cross drew public outrage and criticism by President Barack Obama as a poster child for out-of-control health care costs when it proposed raising rates for Californians by as much as 39 percent.

On Thursday, Los Angeles-based Anthem withdrew plans for the increase.

Anthem made the decision after an independent audit determined the company's justification for raising premiums was based on flawed data, state Insurance Commissioner Steve Poizner said.

The decision also came one day after Anthem's parent, Wellpoint, Inc. of Indianapolis, announced its first-quarter profit soared by 51 percent.

Anthem said separately it will file a new application for a rate increase with the California Department of Insurance and the Department of Managed Health Care, perhaps as early as next month. It added that any errors in its original application were inadvertent.

"The current application that was withdrawn today (Thursday) was just flawed," Poizner said during a conference call with reporters. He added that it contained mathematical errors and in some instances double counting of data.


Source and More:
http://www.google.com/hostednews/ap/article/ALeqM5hdI2VeS3N7msQHx4sQygA1DbaK9QD9FDA6PO0

No comments: