WellPoint insurance hike becomes target for President Obama [View All]

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http://news.yahoo.com/s/ap/20100211/ap_on_he_me/us_insurance_rates_wellpoint

Health insurer WellPoint blames the Great Recession and rising medical costs for its planned 39 percent rate increase for some California customers. To President Barack Obama, however, it's Exhibit A in his campaign to revive the health care overhaul.

Health and Human Services Secretary Kathleen Sebelius, who received the company's explanation in a letter Thursday, said "it remains difficult to understand" how premium increases of that size by can be justified when WellPoint Inc. reported a $2.7 billion profit in the last quarter of 2009.

"This is a stark illustration of what the status quo means for American families," said White House spokesman Reid Cherlin. "You'd be hard-pressed to find a better example of why reform is so urgent, and it's going to continue to be part of the case the president makes."

(snip)
The rate hike shock, however, could help Obama make his case that Republicans need to come to the table on health care. GOP leaders, who want to start talks over from scratch, are going reluctantly to the Feb. 25 health care summit convened by the president.