Outrage: Anthem Blue Cross drops proposed 39 percent rate hike 

WHAT: Insurance giant Anthem Blue Cross drew public outrage when it proposed raising rates for its 800,000 California customers by as much as 39 percent. Now Anthem has withdrawn plans for the increase after a state-mandated independent audit determined the insurer’s justification for raising premiums was based on flawed data.

HOW: The canceled rate-boost application contained mathematical errors and, in some instances, double counting of data, according to state Insurance Commissioner and GOP gubernatorial candidate Steve Poizner. Anthem’s rate withdrawal came just one day after parent company Wellpoint, Inc., announced its first-quarter profit soared by 51 percent.

WHAT’S NEXT: Anthem said that any errors in its discredited application were accidental and it will file a new application for higher rates next month.

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Staff Report

Staff Report

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A daily newspaper covering San Francisco, San Mateo County and serving Alameda, Marin and Santa Clara counties.
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