Outrage! Anthem’s 39% hike

By Steve Dzielak

Anthem Blue Cross, defying a public outcry, intends to boost rates for its 800,000 California customers by as much as 39%.

Executives from Anthem and from WellPoint Inc., its parent company, have been squirming as witnesses at hearings before angry committees of Congress and the California legislature.

Legislators want to know how a 39% rate hike squares with WellPoint’s $4.75 billion profit in the last three months of 2009. They’ve been branding Anthem and WellPoint as poster children for the future unless comprehensive health care reform is enacted.

“Corporate executives at WellPoint are thriving, but its policyholders are paying the price,” Rep. Henry Waxman (D-CA) said at a February 24 Congressional hearing. “If we fail to pass health reform, insurance rates will skyrocket and health insurance will become so expensive only the most healthy and the most wealthy will be able to afford coverage.”

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