Anthem Gets California's OK for Higher Rates, Having Backed Off Startling Rate Increase that Influenced Reform Debate

California regulators approved a rate increase for Anthem Blue Cross that was hefty but still much lower than the proposal that set off a firestorm of criticisms during the healthcare reform debate in February, according to a report by the Los Angeles Times.

Anthem's original plan was to increase premiums as much as 39 percent in California's individual insurance market, making it a poster child for gargantuan yearly rate increases and heightening calls for limits against insurers in the reform legislation, which had not yet passed.

In April, Anthem withdrew its original proposed increase after the state found flaws in the company's methodology. In its current action, the state allowed Anthem increases averaging 14 percent and as high as 20 percent, effective Oct. 1.

HHS Secretary Kathleen Sebelius said Anthem's reduction of proposed rates represented an improvement in state oversight of health insurers. The state also approved an individual rate increase for Blue Shield of California averaging 19 percent and as high as 29 percent.

Read the Los Angeles Times report on Anthem.

Read more coverage on Anthem.

- Head of California Anthem Blue Cross Resigns After Defending Controversial Rate Hikes

- WellPoint Withdraws Proposed Rate Increases in California After Errors Discovered

- WellPoint Explains High Rate Increases for Individual Insurance

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