Anthem Agrees to Delay, Reduce Rate Increase

Anthem Blue Cross has agreed to lower its premium rate increase and delay other rate increases after a request to do so by the California Department of Insurance. The Woodland Hills insurer had held off on increases that were supposed to occur April 1 due to a request by California Insurance Commissioner Dave Jones. Starting July 1, the average premium increase will be 9.1 percent, as opposed to the 9.8 percent in the company’s original rate filing. Anthem has also agreed to a request to delay increases in co-payments and deductibles to Jan. 1, 2012. The California Department of Insurance said the inclusion of co-payment and deductible increases and other factors actually made the original average rate increase come out 16.4 percent instead of 9.8 percent. “This result in over 600,000 policyholders saving money,” Jones said. “For some it may be the difference between whether they keep their current coverage, switch to a plan that offers less benefits or drop coverage altogether. The total savings to policy holders is estimated to be at least $40 million.” Anthem Blue Cross said it lost about $110 million on individual health insurance coverage in California in 2010 and it expects to lose money again this year, even with the rate increase. “We are pleased with the resolution of this matter, but feel all stakeholders in the health care market in the state must do more to control the unrelenting rise of underlying health care costs,” Anthem Blue Cross President Pam Kehaly. “We plan to be an active participant in helping forge that dialogue, and bringing together the major health care players to find the best solutions for California consumers.” Jessica Vernabe