Health, Doctors and Common Sense

California Insurance Commissioner Steve Poizner dispatched a letter Monday to executives at WellPoint, the parent company of Anthem Blue Cross, urging them to postpone rate increases until May 1 so an independent actuary can investigate.

California law requires health insurers to pay out at least 70 cents of each premium dollar for benefits.

"If the independent actuary concludes that Anthem's rates are not actuarially justified and do not meet the 70 percent loss ratio requirement, I will take all legal action available to me to stop the rate increase," he said.

In his letter to Angela Braly, president and chief executive officer of the Indiana-based insurer, Poizner noted the "unprecedented economic distress for consumers in America."

He said his agency has received numerous complaints "from irate Californians describing how Anthem's proposed rate increases would cripple them financially."

Anthony Wright, the executive director of Health Access California, has long been a critic of Anthem Blue Cross and its pricing practices.

"Consumers who buy coverage as individuals have no bargaining power and are at the mercy of the big insurance companies," he said Monday.

Tags: Actuary, Anthem Blue Cross, Bargaining Power, California Insurance Commissioner, California Law, Californians, Chief Executive Officer, Consumers, Economic Distress, Executive Director, Health Insurers, Insurance Companies, Insurer, Loss Ratio, May 1, Parent Company, Rate Increase, Rate Increases, Steve Poizner, Wellpoint