Legislative leaders ask Congress to include Anthem of Maine in investigation of insurance rate increases

The Committee on Energy and Commerce and its subcommittee on Oversight and Investigations are investigating reports that Anthem Blue Cross is increasing rates in the State of California – Maine leaders are asking for attention to be paid to Anthem’s request for 22.9 percent hike in Maine’s individual market.

Maine’s Speaker of the House, Senate President and the Co-chairs of the Insurance and Financial Services are welcoming the recent announcement of the Committee on Energy and commerce and its Subcommittee on Oversight and Investigations that they will investigate the request of Anthem WellPoint for a rate increase in the California individual market. Members of the Maine Legislature are asking Chairmen Henry Waxman and Bart Stupak to broaden their investigation to include Anthem’s practices in states like Maine.

In a letter sent to Congressman Waxman and Congressman Stupak on Friday, Speaker Hannah Pingree, President Elizabeth Mitchell, Senator Peter Bowman and Rep. Sharon Treat have asked the Oversight and Investigation Subcommittee to consider the recent requests by Anthem for average increases of 18.1 percent in 2009 and 22.9 percent in 2010.

“I applaud the Oversight Committee for taking the initiative to look at these rate increases and hope they will also consider including Maine in their investigation,” said Speaker Pingree. “At a time when families are struggling to make ends meet Anthem is asking for huge rate increases to pad their profits. If ever there has been an argument for health care reform, this is it.”

Maine’s Superintendent of Insurance, Mila Kofman has denied Anthem’s 2009 full rate request. However, Anthem is suing the State of Maine because they feel the 10.9 percent hike that was approved by Kofman, is insufficient to guarantee profits.

“Insurance companies cannot continue to enjoy record profits while more and more Americans lose their health insurance,” President Mitchell said. “It is time that Anthem, and other private insurers, explains to the public why they continue to escalate their profits at a time when millions of people cannot afford coverage.”

In the absence of federal action on health insurance reform, the Maine Legislature looking at efforts to protect health care consumers, including removing lifetime benefit caps.

“Time and time again, Anthem has raised its rates to the point where Maine people simply can’t afford health insurance. Anthem and its corporate parent, WellPoint, are enormously profitable - WellPoint's profits rose to $2.7 billion last quarter – and we are paying the price” said Rep. Sharon Treat, House Chair of the Insurance and Financial Services Committee. “Just last week, our committee heard nearly four hours of testimony from Maine people crushed by medical debt and paying for insurance that doesn’t even cover their bills. Its time for Congress to look at Anthem’s books and figure out what’s going on.”

Congressman Waxman, who is the chair of the Committee on Energy and Commerce and Bart Stupak, Chairman of the Subcommittee on Oversight and Investigations, have scheduled the hearing for February 24 at 10:00 am. You can read the letter by the Congressmen