DeLauro Commends Denial of Anthem’s Excessive Rate Increase by State Insurance Department

Washington, D.C. – Congresswoman Rosa DeLauro (CT-3) welcomed the announcement that Anthem Blue Cross and Blue Shield of Connecticut's request to raise their individual health insurance policy rates by as much as 32 percent was denied by the Connecticut Insurance Department. Earlier this week, DeLauro, joined by Congressman Joe Courtney (CT-2) wrote to Anthem President David Fusco urging the company to withdraw the increase that is expected to affect over 55,000 Connecticut residents.

"I am relieved for our state's residents to learn that the Connecticut Insurance Department has wisely decided to deny the egregious rate hike requested by Anthem and hold a public hearing later this month to determine a fair course of action. Anthem's exorbitant proposal to hike rates on individual policies by as much as 32 percent on individual insurance policies was out of sync with the real day-to-day struggles Connecticut residents are facing during this economic crisis," said DeLauro.

It was estimated that as a result of the increase, the Lumenos plan that has a $1,250 deductible would get a 32 percent increase, while the Century Preferred PPO plan with a $250 annual deductible for a 30-year-old man, would see his premium jump from $264.70 a month to $326.51 (23%). Over the past eight years (2000 through 2007), health care premiums, on average, for families rose by 80.7 percent, while median earnings rose by only 9.9 percent.

DeLauro added, "Health care premiums for Connecticut's families have already gone up more than 80 percent over the past eight years. This is why the Congress and President Obama are working hard on legislation to ensure that all Americans have stable, high-quality and affordable health care coverage. And with the two largest insurers in Connecticut, including Anthem's parent company, controlling 66% of the state market, this rate hike shows us exactly why Connecticut residents deserve the choice of a public health insurance option to compete with private health insurance. A public plan will let people vote with their feet when they are faced with these types of outrageous rate hikes from the private market."