Even before WellPoint dissatisfied President Obama over its rate increases in California, it wasn’t doing so hot satisfying
its actual customers, according to the American Customer Satisfaction Index.
Individual insurance rate hikes like those recently planned for WellPoint Inc.’s California customers might be unlikely to
spread to those covered through their employers. But such hikes will affect a huge number of Americans — the 46 million
with no insurance at all.
The firestorm created this week by Indianapolis-based health insurer WellPoint’s spike in premiums could resurrect some parts
of
the languishing health reform bills.
Health insurer WellPoint is blaming the Great Recession and rising medical costs for its planned 39 percent rate increase
for some California customers of its Anthem Blue Cross plan. But Health and Human Services Secretary Kathleen Sebelius isn’t
buying the explanation proffered in a letter delivered to her Thursday.
The Indianapolis-based health insurer says a shift in demographics and rising medical costs have led to its planned 39 percent
rate hike for some California customers.
Anthem has declined to say how many of its 800,000 individual policyholders in California are being affected by the hike.
But Health and Human Services Secretary Kathleen Sebelius demanded specifics in a sternly worded letter.
WellPoint Inc. chief financial officer Wayne DeVeydt said President Obama’s Federal Trade Commission is unlikely to approve
mergers among the biggest insurers.
WellPoint and other health insurers were profitable in 2009, but the lingering unemployment problem is dampening the outlook
for this year.
Employer activism is on the rise when it comes to keeping hospitals honest in their negotiations with health insurers.
Executives at Indianapolis-based WellPoint say more employers are airing their displeasure when hospital
systems ask for double-digit reimbursement increases.
Analysts say losses of employer-sponsored insurance customers due to layoffs is finally slowing down.
Republicans in the Legislature have joined their counterparts in 25 other states in trying to prevent key aspects of reform
from taking effect in Indiana.
Joint resolutions in the state Legislature seek to amend the state constitution to block enforcement of provisions in the
federal bills that would require individuals to buy insurance and all but the smallest employers to help pay for it.
Kevin Stewart stole a computer server that contained the names and confidential information of 900,000 people.
Doctors are pushing again to strengthen their hands in contract negotiations with health insurers, especially market leader
Anthem Blue Cross and Blue Shield.
The long-term outlook for health care reform is uncertain, but many analysts are expecting big health insurers like Indianapolis-based
WellPoint to benefit in 2010.
Legislation set to come out of Washington will not change the most fundamental problems of the health
care system, leaving it up to states, cities and companies to figure out what to do about it.
The bill imposes hefty new taxes and coverage rules that will pinch insurers such as WellPoint Inc. by forcing them to cover
more sick people without gaining enough healthy, lower-cost customers, industry insiders say.
An actuarial report prepared by the local office of Milliman Inc., a Seattle-based consulting firm, projects
that the state of Indiana would have to hike its Medicaid payments by one-third in order to entice more
doctors into the program.
The pharmaceutical industry may have to cough up more than the $80 billion it agreed to contribute to President Barack Obama’s
health overhaul effort, reflecting pressure from Democrats and their supporters for more money to cover older and low-income
people.
If Congress passes health care reform, more people will become like Juli Erhart-Graves, whose family spends nearly 18 percent
of its income on health insurance and out-of-pocket medical costs.
