Boxer Urges California Attorney General to Investigate Anthem Blue Cross Rate Increases

Washington, D.C. – U.S. Senator Barbara Boxer (D-CA) today sent a letter urging California Attorney General Edmund G. Brown, Jr. to investigate the proposed rate increases recently announced by Anthem Blue Cross.

Anthem Blue Cross of California insures more than 800,000 Californians in the individual market, and it has announced that those policy holders would see rate increases of up to 39 percent, effective March 1.

The full text of Senator Boxer’s letter is below:

February 9, 2010

The Honorable Edmund G. Brown Jr.

Attorney General

California Department of Justice

Sacramento, CA 94244

Dear Attorney General Brown:

I was very disturbed to hear that Anthem Blue Cross is raising rates by as much as 39 percent. I understand that the company has also notified their customers that it may be increasing prices several times each year, rather than once a year.

California families are struggling to hang onto their health insurance through this economic downturn and I ask that you investigate the rate increases proposed by Anthem Blue Cross to determine whether or not the company has broken state law.

Anthem Blue Cross has a responsibility to provide a detailed justification for these rate increases to the citizens of California. Our constituents have a right to know that they are getting value for their money. The people of California deserve to know if their premium increases are going to medical care or insurance company overhead costs like salaries, profits, and advertising. It is not enough for this company to simply give assurances they are complying with California law.

At a time when Anthem Blue Cross’ parent company, WellPoint Incorporated, has seen its profits soar, earning $2.7 billion in the last quarter of 2009 alone, it is unacceptable for the company to impose crippling increases on working families in our state.

Please let me know if assistance from the U.S. Department of Justice would help you in this investigation. I look forward to working with you to protect Californians from unfair insurance company practices.

Sincerely,

Barbara Boxer

United States Senator

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