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Health Insurance Executives are speaking up after weeks of being scrutinized by high ranking officials. Congress has been raising concerns about Anthem Blue Cross Blue Shield specifically for their expected premium increase–that could affect thousand of people with health insurance.
The executive, Angela F. Braly, president of WellPoint, defended the insurance company’s move saying soaring medical costs is the only reason they are planning rate increases. She went on to warn that capping health insurance companies premium increases would further complicate the health insurance system.
Anthem Blue Cross, a unit of WellPoint, recently announced many of its customers would have to pay an average increase of 25 percent, with some rates going up as much as 39 percent. The company postponed the rate increase after it garnered bad media attention and criticism.
High ranking officials including President Obama negatively responded to the Anthem’s expected move. Citing their billion dollar profits as an example of the problem with the healthcare system. Obama and other officials said it was a clear example of why legislation needed to be passed.
The increases in premiums are driven by prices charged by doctors, hospitals, drug companies and other suppliers, and by increases in the use of health care by an aging population, Ms. Braly said.
“For 2010,” Ms. Braly said, “we expect hospital inpatient and outpatient costs in California to grow by over 10 percent, driven primarily by hospital reimbursement rates. Additionally, we expect pharmacy costs in California to grow by over 13 percent.”
The President is slated to hold a meeting with Republicans and Democrats to discuss ideas on making personal health insurance more affordable..
Tags: Anthem, health bill, health insurance, Presidnet Obama
