Insurance

Anthem Defends Rate Hikes In California

February 24, 2010  ·  Consumer Watchdog

<p> <strong>Legislative hearing results in testy exchange with lawmakers</strong><br /> <br /> Consumers also showed up to voice their displeasure. Laurel Kaufer, a self-employed single mother of two and longtime Anthem customer, said her bare-bones plan was set to rise 34% to $1,102 per month on top of a 22% increase in rates over the last two years.  "If Anthem's new rate increase is permitted, I will spend a minimum of $14,724 before coverage actually kicks in for anything but a standard office visit," Kaufer said. "I can't afford to seek medical care whenever we see the need." <br /> </p>

Jerry Brown gets it right on Prop 17’s Title & Summary

February 24, 2010  ·  Jamie Court

<p> California Attorney General Jerry Brown has issued his <a href="http://www.consumerwatchdog.org/resources/BallotLabelProp17.pdf">final ballot label for Proposition 17</a>, the Mercury Insurance-financed ballot measure to surcharge those with lapses in auto insurance coverage.  Brown got the ballot label right this time, acknowledging Prop 17 allowed insurers to increase premiums, as well as lower prices, based on whether a driver has a lapse in insurance coverage. </p>

Calif. Lawmakers Outraged By Insurer’s Rate Hikes

February 23, 2010  ·  Consumer Watchdog

Sacramento, Calif. (AP) -- California lawmakers grilled Anthem Blue Cross executives on Tuesday about their plan to boost individual insurance premiums by as much as 39 percent, only to hear them blame the economy and a broken health care system. Laurel Kaufer, a single, working mother from Woodland Hills, said she received a letter from the company last month saying her premium could go up by about 34 percent, from $823 a month to $1,102 a month. Over the past 10 years, she said, her premium has risen 550 percent. "Because of these relentless rate hikes and out-of-pocket costs, I measure the need for each visit to the doctor, especially for myself," she said in an interview before the hearing, where she testified alongside several consumer advocates.

As Anthem Blue Cross Sends Profits To Wellpoint, It Plans Hefty Rate Hikes For Californians

February 22, 2010  ·  Consumer Watchdog

<p> <strong>Even as the health insurance giant turns over hundreds of millions in profits to its parent company, it defends plans to raise rates for Californians whose care last year exceeded premiums paid.</strong> </p> <p> But not all the profits went to the corporate parent. Anthem has accumulated more than $1 billion in cash -- in excess of what regulators require the company to reserve to cover outstanding claims, The Times found. And, between 2005 and 2007, Anthem made annual payments of more than $2 billion a year to affiliated companies for unspecified services, according to an analysis of regulatory filings by Consumer Watchdog. The Santa Monica-based advocacy group has urged regulators to investigate the transfers. </p>

Feinstein Takes On Anthem Blue Cross Over Premium Hikes

February 19, 2010  ·  Consumer Watchdog

WASHINGTON, D.C. — Responding to growing outrage over plans by Anthem Blue Cross to dramatically raise health insurance rates for hundreds of thousands of Californians, Sen. Dianne Feinstein on Friday proposed giving the federal government new authority to block premium increases deemed to be "unjustified." Santa Monica-based Consumer Watchdog, which for years has lobbied for rate regulation of health insurance products sold in California, called Feinstein's plan a step in the right direction. "It's needed and appropriate for the federal government to provide a backstop when states can't or won't stand up to insurance companies," said Jerry Flanagan, a health care advocate for the group.

Insurer Veils Its Funding Of Measure

February 19, 2010  ·  Consumer Watchdog

<strong>Literature For Prop. 17 Omits Mercury’s Millions</strong><br /> <br /> Officially, the proposition is the handiwork of Californians for Fair Auto Insurance Rates or Cal-FAIR, which describes itself as “a growing coalition of consumer advocates, businesses and insurers from across the state.” But Cal-FAIR is actually the creation of a Sacramento public-affairs firm, Bicker, Castillo & Fairbanks, that has so far earned $200,000 from Mercury for its work on the campaign, part of the insurer’s $3.5 million total contribution to the effort.

Talking Car Insurance With Mercury’s Top Man

February 17, 2010  ·  Consumer Watchdog

<strong>George Joseph is bankrolling Proposition 17 on the June ballot, saying it’s about lowering rates for California drivers. Not everyone agrees.<br /> </strong><br /> Consumer Watchdog insists Prop. 17 would, in effect, legalize surcharges that were made illegal by 1988’s Prop. 103, adding yet another way to discriminate against those who don’t fit the insurance industry’s profile of the perfect driver. One result, they argue, would be more uninsured drivers on the road at great cost to everyone.

Anthem as “Exhibit A”

February 16, 2010  ·  Jamie Court

<p> Kevin Sack hits it right on the head in today's <a href="http://www.nytimes.com/2010/02/16/health/policy/16anthem.html?ref=business">New York Times </a>with his story about how Anthem's 39% premium increase in California embodies the need for health care reform. The missing element is prior approval health insurance regulation. </p>

Critics Say Initiative Hits Some Motorists Too Hard

February 16, 2010  ·  Consumer Watchdog

California’s third-largest auto insurance company says it’s just trying to give consumers a break by pushing a ballot initiative that could significantly change the way drivers are charged for their coverage. But consumer groups say that Proposition 17, which would allow insurers to set their rates partly based on how long drivers have had continuous coverage, could push auto rates higher for a large number of drivers — including military personnel who often let their insurance lapse when they are transferred.

Battle Over Auto Insurance Ballot Measure Heats Up

February 15, 2010  ·  Harvey Rosenfield

SACRAMENTO, CA -- For more than two decades, Mercury General Corp. Chairman George Joseph has been sparring with consumer advocate Harvey Rosenfield over California's landmark automobile insurance law, Proposition 103. Combat over the latest initiative, Prop 17, escalated last week when the state Department of Insurance released legal documents sought by the San Francisco Chronicle. The documents accused Mercury of illegal practices, such as unfairly denying coverage and charging discriminatory rates to motorists who were not at fault in accidents, were members of the armed forces or worked in certain professions.

Anthem Blue Cross To Delay Rate Increases

February 15, 2010  ·  Consumer Watchdog

<b>The scheduled March 1 hike of up to 39% for individual health insurance policies will not take effect before May 1. In the meantime, California regulators will analyze the legality of the increases.</b> <br ><br > Jerry Flanagan, health policy director at Consumer Watchdog in Santa Monica, said Anthem's efforts may prompt a backlash. He urged the Legislature to give Poizner more power to review and possibly disapprove new rates. "Existing law is inadequate to restrain rate increases," he said.

Anthem Blue Cross Delays Major Rate Increases

February 15, 2010  ·  Consumer Watchdog

SAN FRANCISCO, CA -- Days after national furor erupted over double-digit health insurance rate hikes for about 700,000 Anthem Blue Cross members in California, the insurer announced Saturday that it would delay the increases for two months to allow state regulators to conduct a review. Jerry Flanagan, health care policy director for Santa Monica-based Consumer Watchdog, said the company has been raising rates by 20 to 40 percent for six straight years and is the biggest player not just in California but nationally, and therefore has a disproportionate influence over the market.