Sebelius Asks California Insurer to Explain Rate Increase (15 times higher than inflation)

An eye-popping 39 percent rate increase in health insurance premiums in California drew a sharp rebuke on Monday from the Obama administration.

Anthem Blue Cross, which is California’s largest for-profit health insurer, plans to raise rates for customers who buy individual coverage by as much as 39 percent by March 1, according to The Los Angeles Times.

The report prompted Kathleen Sebelius, the secretary of health and human services, to demand a public accounting by the company to justify the increases.

In a letter to Anthem, Ms. Sebelius noted that the company’s parent, WellPoint Inc., earned $2.7 billion in the last quarter of 2009, making the rate increases “even more difficult to understand.”

She said the rate increases were up to 15 times higher than inflation. And she asked the company to explain how much of the increases would go toward better medical care and how much toward the company’s salaries, profits and advertising.

http://prescriptions.blogs.nytimes.com/2010/02/08/sebelius-asks-calif-insurer-to-explain-rate-hike/
http://www.hhs.gov/news/press/2010pres/02/20100208c.html

Pure unadulterated greed and avarice. They will never hold themselves accountable or do the right thing.

We saw the bankers squirm. Now I want to see these AH'S do a lot of squirming! NONE of them would be able to explain why their radical increases were necessary!

But Sibelius questioning them does. I wonder how the media will twist this to make it the Obama administration's fault?

Thank you for posting this!

It's just greed, lack of regulation and any semblance of honor.

That was my first thought.

"Madam Secretary, you do realize we're a for-profit corporation, right? And we've wisely invested our profits in Congresspersons. So what, exactly, would prevent us from a 39% rate hike? Congressional action? Regulation? Pangs of conscience? A feeling a guilt? A sense of morality?

"Madam Secretary, our goal is to get every possible available dime of income that our customers get. If our customers are buying things like furniture, DVDs, appliances, books, music, smartphones, and clothes, then obvously we have plenty of room to expand the percentage of a customer's income we put in our pockets."

"I am altering the deal. Pray I don't alter it any further."

--will do jackshit about it, other than to subsidize the useless shitstains with $900 billion of our tax dollars.

My monthly individual with a 'kin $3500.00 deductible went from $225.00 to $261.00. You math whizs can work out the % increase but I do know that I have used it recently so there is no reason go up!!!

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Companies aren't in business to provide cost-effective products/services. They're in business to maximize profit. Their fiduciary obligation is to their shareholders, not their policyholders.

Sebelius (and all of us) should be asking why we'd rely on such a system to provide health care.