DeLauro, Courtney Press Anthem to Withdraw Rate Hike

Washington, D.C. – U.S. Representatives Rosa L. DeLauro (CT – 3) and Joe Courtney (CT-2) added to the chorus of outrage at the proposed rate hikes announced by Anthem Blue Cross and Blue Shield of Connecticut and urged the company to withdraw the increase that is expected to affect over 55,000 Connecticut residents.

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.

According to company filings with the Securities and Exchange Commission, WellPoint, Anthem's Indianapolis-based parent company, reported net income of $580.4 million in the first quarter of 2009 and recorded total assets of $49.4 billion.

"We strongly urge you to reconsider your proposal to dramatically increase rates, which will put health care out of reach for thousands of Connecticut residents," DeLauro and Courtney write in the letter. "The rate increases proposed by Anthem will only cause more Connecticut residents to lose coverage – a problem that will be made worse by the fact that those with pre-existing conditions will be unable to find affordable coverage elsewhere. The rate increase is particularly concerning given that Angela Braly, CEO of Anthem's parent company, Wellpoint, received over $9.8 million in compensation in 2008 alone, not to mention the health insurance industry's promise to President Obama that it would do its part to save $2 trillion in health care costs over the next ten years."

Below is the text of the letter.

July 7, 2009

Mr. David R. Fusco

President

Anthem Blue Cross and Blue Shield of Connecticut

370 Bassett Road

North Haven, CT 06473

Dear Mr. Fusco:

We write to express our serious concern about news reports that Anthem Blue Cross and Blue Shield of Connecticut is seeking approval from state regulators to increase its rates for consumers in Connecticut's individual insurance market by as much as 32 percent. The proposed rate increases would be simply unsustainable for Connecticut residents, who are already struggling with rising rates of unemployment, loss of job-based health care coverage, and skyrocketing health care costs. We strongly urge you to reconsider your proposal to dramatically increase rates, which will put health care out of reach for thousands of Connecticut residents.

Prior to the economic recession, some 326,000 Connecticut residents lacked health care coverage. That number has now grown by an estimated 12 percent, to 420,000 uninsured residents. The rate increases proposed by Anthem will only cause more Connecticut residents to lose coverage – a problem that will be made worse by the fact that those with pre-existing conditions will be unable to find affordable coverage elsewhere. The rate increase is particularly concerning given that Angela Braly, CEO of Anthem's parent company, Wellpoint, received over $9.8 million in compensation in 2008 alone, not to mention the health insurance industry's promise to President Obama that it would do its part to save $2 trillion in health care costs over the next ten years.

Right now, Congress and President Obama are working hard on legislation to ensure that all Americans have stable, high-quality and affordable health care coverage. Anthem's proposed rate increase serves as a reminder not only of why reform is so desperately needed to provide relief from high health costs, provide continuity, and end the practice of denying people health care due to pre-existing conditions; it is also an example of why Americans should have the choice of an affordable public health insurance option. Clearly, the status quo will only bring higher costs, less stable coverage, and more health care services denied.

Health care reform is of immense personal significance to millions of Americans. In 2007, sixty-one percent of working-age adults who had trouble paying medical bills or were paying off medical debt were insured at the time care was provided. Over one in four uninsured Americans with cancer have delayed or decided not to get care due to costs. And millions of Americans cannot find affordable health care because they have a pre-existing condition such as diabetes, heart disease, or even a prior Caesarean section. As such, the proposed rate increases in Connecticut would make it impossible for many Connecticut residents to maintain their health care coverage.

Thank you for your consideration. We look forward to hearing from you on this important matter.

Sincerely,

Rosa L. DeLauro

Joe Courtney