Anthem Requesting Another Rate Hike - Do they really need it?

Anthem Blue Cross and Blue Shield (“Anthem”) has filed for approval of proposed revised rates for certain of its individual health insurance products, specifically its HealthChoice, HealthChoice Standard and Basic, and Lumenos Consumer Directed Health Plan products. Anthem proposes revised rates for these products that it asserts will produce an average increase of 14.5%. As identified in its filing, the largest premium increase depending on deductible level and type of contract for HealthChoice is 17.2%, for HealthChoice Standard and Basic is 7.7%, and for Lumenos is 34.1%. As of November 2008 there are 12,049 policyholders who will be affected by the proposed rate revisions. Anthem requests that these rate revisions become effective on May 1, 2009. Does Anthem really need the rate increases? Consider this, they already make a great profit on the policies they sell. Between 2004 and 2007, in Maine, Anthem's profits increased by 89.2%, increasing from $40 million to $75.7 million, while its membership increased over that same period of time at just 2.4%. Anthem's annual profits in 2007 were $75.7 million. Anthem's surplus grew from $177.2 million to $252.1 million over the same time period, 2004 to 2007. What are they doing with all this money? Paying it out to their share holders in the form of dividends, paying it out in the form of bonuses to their CEOs, but certainly not making health care coverage more accessible and more affordable. Just think, with half of those profits, they could have given Dirigo its much needed boost. What an idea! But no, they and the Maine State Chamber of Commerce, every year, take Dirigo's savings offset payment to court, challenging the way it is calculated. More corporate greed at the labor and expense of Maine's hard working people. While all this is happening, people are losing their health care coverage because they can no longer afford it. HEALTH CARE SHOULD NOT BE A PROFIT MAKING BUSINESS. NO PROFIT SHOULD BE MADE OFF SICKNESS OR PREVENTIVE MEDICINE. Maine's Bureau of Insurance is holding a public hearing on this proposed rate increase by Anthem. If you're one of these policy holders, or an interested individual as myself, I urge you to attend the public hearing. It will be beginning at 9:00 a.m. on March 12, 2009, in the Central Conference Room at the Department of Professional and Financial Regulation, Gardiner Annex, 122 Northern Avenue, Gardiner, Maine. Members of the public are invited to attend the hearing. For all the legalese of this hearing, check out the Bureau of Insurance's web page. Anthem's profit figures comes from Insuring Health or Ensuring Profit? A Snapshot of the Health Insurance Industry in the United States, page 21, published by Northwest Federation of Community Organizations in the Summer of 2008. Be patient as the report loads, it takes a second or two.