Insurance Rate Hike

Anthem wants 20-32 percent hike in insurance rates
By KATIE NELSON , 07.20.09, 06:24 PM EDT
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HARTFORD, Conn. -- Anthem Blue Cross and Blue Shield of Connecticut, which covers nearly one in three state residents, on Monday proposed raising some health insurance policy rates by as much as 32 percent.

Attorney General Richard Blumenthal and a legal representative of the state's Heathcare Advocate office both argued against the proposal during a daylong hearing before the state Department of Insurance.


Blumenthal called Anthem ( ATH - news - people )'s request "a rate increase that will be catastrophic, not only for our consumers but for our economy."

Anthem asked the Insurance Department for permission to raise rates by 20 to 32 percent - averaging 23.4 percent - beginning Oct. 1.

"A timely rate increase reflecting emerging claim experiences should help to mitigate a higher rate increase in the future," said George Siriotis, regional vice president of individual sales.

Anthem representatives argued that the company needs more money to cover rising claim costs triggered by longer hospital stays, new and expensive prescription drugs, advanced technologies and an aging population. The company said wasteful health care spending, defensive medicine, unnecessary hospital admissions and medical errors are also driving up costs.

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