WellPoint division raked over California rate hike

[cal04]

Premium increase of 39% prompts calls for investigations; shares fall
http://www.marketwatch.com/story/wellpoint-division-raked-over-insurance-rate-hike-2010-02-10

The heat is being turned up on a California division of WellPoint Inc. as federal and state investigations are looking into a planned rate hike of up to 39% for individual policies, reports said Wednesday.

The House Energy and Commerce subcommittee on Oversight and Investigations plans to hold hearings later this month, in which WellPoint (WLP 60.35, -1.10, -1.79%) Chief Executive Angela Braly will be called upon to testify. California Insurance Commissioner Steve Poizner also plans to examine the planned increases from the division, Anthem Blue Cross of California.

The move also has drawn criticism from all walks of government, including President Barack Obama, who referred to Anthem Blue Cross in a press conference Tuesday in reiterating his call for health-care reform.

"If we don't act, this is just a preview of coming attractions," Obama said.

[DJ13]

1. Uh oh, they're in trouble now

Expect a sternly worded letter any day now WellPoint.

[Lesleymo]

2. Maybe even a wag of the finger

I'm sure they're all shaking in their boots. Their very expensive, mink-lined boots.