House Looks into Anthem Increases

New Haven Register, Wednesday, June 30, 2010

In August, the state Department of Insurance rejected rate increases of up to 32 percent on certain plans, but final approvals capped the highest rate increase at 20 percent.

“I join with my colleagues to urge an independent review of Anthem’s rate increases and to ensure that Connecticut residents are not subject to the same unfair accounting that California was,” U.S. Rep. Rosa L. DeLauro, D-3, said in a statement.

Anthem earlier this year withdrew a request for rate increases of up to 39 percent in California after the proposal was rejected by regulators there.

California officials ordered an independent audit and, in their ruling, cited use of incorrect data and assumptions by the insurance carrier.

“The landmark health reform law we passed will force health insurance companies to compete, increasing the likelihood that consumers will be able to avoid unjustified rate increases. But in the meantime, we must act to prevent insurance companies like Anthem from taking advantage of our residents,” DeLauro said. “It is essential that this review is conducted to determine if Anthem’s rate increases were fairly presented.”

Last month, U.S. Health and Human Services Secretary Kathleen Sebelius sent a letter to each state recommending that officials review any rate increases already approved on Anthem plans.

Sullivan’s office received the letter from the representatives Monday, a spokeswoman said. The commissioner said Tuesday in a statement that he has directed his staff to “leave no stone unturned” and again review Anthem’s rate filings.

“We are in the process of conducting our review to make sure that consumers were not adversely impacted by any mathematical errors in Anthem’s filing,” Sullivan said.

Sarah Yeager, director of corporate communications for Anthem, said the company will continue to cooperate with the Department of Insurance. No new proposals from Anthem are pending, she said.

“Anthem respects the commissioner’s responsibility to ensure rate accuracy and adequacy and will continue to cooperate as needed,” Anthem said in a statement.

Other signatories on the letter are U.S. Reps. Joseph Courtney, John Larson, Chris Murphy and Jim Himes.