Lawmakers Grill WellPoint Execs Over Profits, Rate Hikes

[IndianaGreen]

Lawmakers Grill WellPoint Execs Over Profits, Rate Hikes

Legislators Question Health Insurer Executives
Norman Cox, Capitol Watchdog

POSTED: 5:30 pm EST February 17, 2010
UPDATED: 6:34 pm EST February 17, 2010

INDIANAPOLIS -- Indiana lawmakers on Wednesday grilled executives with Indianapolis-based health insurer WellPoint over record profits and ballooning salaries in the face of huge rate hikes.

WellPoint Inc. blamed a shift in demographics and rising medical costs for its planned 39 percent rate hike for some California customers, telling Health and Human Services Secretary Kathleen Sebelius that because of the weak economy, healthy people are dropping coverage or buying cheaper plans.

Majority Democrats on the House Insurance Committee had a lot of questions for WellPoint-Anthem executives on Wednesday, 6News' Norman Cox reported.

"I'm frustrated by the fact that we have these escalating costs that are just beyond comprehension," said Rep. Craig Fry, D-Mishawaka, the committee chairman.

Lawmakers also questioned the $2.7 billion profit WellPoint made just in the last quarter of 2009, and why that made rate increases necessary.

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Democrats also turned their fire on the insurance department regulators appointed by Gov. Mitch Daniels.

They said they were stunned to find that the department only examines how much money a particular policy is making when deciding a rate increase, and does not consider how much money a company is making overall.

"It's not an inquiry that we make, what they do with (the money)," explained acting Insurance Commissioner Doug Webber.

Both sides talked about getting back together with ideas on how to hold down the cost of health care in general and insurance in particular.

WellPoint said a minority of customers will see 39 percent increases and that those customers have an option to choose plans with a lower premium but higher out-of-pocket costs.

http://www.theindychannel.com/news/22593710/detail.html