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Denied / Delayed Insurance Claims

• WellPoint's CEO's defense of rate hikes seen as unapologetic...
  Posted on 3/2/2010
• Consumer group sues Anthem for restricting coverage...
  Posted on 3/2/2010

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Sebelius Rejects WellPoint's Explanation of Premium Increases

Posted on Feb 16, 2010

Health and Human Services Secretary Kathleen Sebelius has rejected the recent claims by WellPoint Inc, the parent company of health insurance provider, Anthem Blue Cross that their recent increases in premium are do to a combination of growing medical costs and loss of healthy consumers.

Sebelius says it is “difficult to believe” that a company who made “2.7 billion in the last quarter of 2009” could justify this rate increase. WellPoint executives claims that Anthem Blue Cross has lost millions in the past year, due to consumers who have switched from their insurance provider to a lower-cost option in the weak economy. According the company, they have paid out more in claims than they are currently receiving in premiums.

The Los Angeles Times reports that Californians could see “as much as a 39% increase” in rates. WellPoint maintains that this is in line with competing insurance providers in the area.

The President, like Sebelius, has also singled out Anthem Blue Cross, citing it as another reason to reform health care. Congress has opened investigation on the company, which will face 3 inquiries over the rate increases. 

Read More About Sebelius Rejects WellPoint's Explanation of Premium Increases...

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