Waxman Launches Probe Into Blue Cross' Massive California Rate Increases

[babylonsister]

Waxman Launches Probe Into Blue Cross' Massive California Rate Increases

Wednesday 10 February 2010
by: Jason Leopold, t r u t h o u t | Report


Henry Waxman, the Democratic chairman of the powerful House Committee on Energy and Commerce, launched an investigation Tuesday into massive rate increases Anthem Blue Cross intends to impose on as many as 800,000 California customers beginning March 1.

Waxman (D-California) and Subcommittee on Oversight and Investigations Chairman Bart Stupak (D-Michigan) sent a letter Tuesday to Angela F. Braly, chief executive of Blue Cross parent company WellPoint, asking her to voluntarily testify before the subcommittee February 24 and provide "a detailed explanation of the reasons for the premium rate increase proposed by Blue Cross in California."

Last week, The Los Angeles Times reported that Anthem Blue Cross, California's largest for-profit insurance provider, planned to hike individual insurance premiums by as much as 39 percent. California state officials and the Obama administration have called on Anthem Blue Cross and WellPoint executives to justify the rate hikes, noting that the parent corporation saw its profits skyrocket last year.

Indeed, WellPoint's profit for all of 2009 was $4.7 billion, nearly twice as much as the company earned the year before. Since 2004, the company has generated $16.7 billion in profits. The corporation's top five executives received more than $20 million in compensation in 2008.

more...

http://www.truthout.org/waxman-launches-probe-into-blue-crosss-massive-california-rate-increases56787

[MercutioATC]

1. Aetna hiked my rates 80% this year.

I switched plans, but had I stayed with Aetna, I'd be paying 80% more than last year.

Why no congressional outrage?

[zazen]

2. smart move-anger at wall st execs will expand to health insu execs, as it should

[xiamiam]

3. blue shield hiked my rate 35% for no good reason in 09..nt

[cdsilv]

4. Pre-emptive profit protection in advance of whatever abomination of healthcare refiorm is spat ....

...out of the legislative branch.

Modeled on Bush's preemptive war doctrine.