Conn. Regulator OKs Premium Hikes for Anthem, but for Less Than Insurer Sought

In an Aug. 6 decision, Insurance Commissioner Thomas R. Sullivan rejected the health insurer's proposed rate increases. The revised rates he approved, which take effect Jan. 1, 2010, reflect reductions of 39% to 58% from Anthem's original rate request for October, the decision says.

Last month, state Attorney General Richard Blumenthal urged Sullivan to reject Anthem's request to raise premiums up to 30% starting in October. In a letter to Sullivan, Blumenthal dubbed the health insurer's proposed 22% to 30% rate increase "outrageous." (BestWire, July 8, 2009). Subsequently, in a post-hearing filing, Blumenthal, along with a health care advocate, told the department that new information showed that Anthem's proposed premium increase is "excessive" and should be rejected (BestWire, July 28, 2009).

"In this instance, I believe that Anthem was tone deaf to the realities facing their policyholders," Sullivan said in a statement provided with the summary of the decision. "Their timing was terrible, and the requested increase unjustified."

According to the decision, Anthem was approved for: a 16.6% increase, not the 22.7% increase it requested, for its BlueCare HMO plans; a 16.5% increase, not a 21.9% increase, for its Century Preferred PPO and health savings account plans; a 19.9% increase, not a 27.7% increase, for its Lumenos consumer-driven health plans; a 13% increase, not a 21.9% increase, for its Tonik PPO plans; and a 20% increase, not a 30% increase, for its traditional fee-for-service plans.

Attempts to speak with Anthem, a unit of Indianapolis-based WellPoint Inc. (NYSE: WLP), weren't successful.

Anthem, however, previously said "it is an indisputable fact that health care costs are continually increasing, leading to higher premiums for consumers. The increasing need for medical services, the use of new, expensive prescription drugs, and advanced technologies are driving up the cost of health care often results in higher premiums for consumers" (BestWire, July 28, 2009).

The company also said that at the insurance commissioner's request, it disclosed its entire rate application before the July 20 hearing (BestWire, July 28, 2009).

"I expect all applications for rate increases that come before this department to be actuarially justified," Sullivan said. "If they aren?t, they will be rejected.?

People enrolled in Anthem's individual health plans represent 4% of the company's total membership of 1.4 million in Connecticut, according to the department (BestWire, July 8, 2009).

Anthem Health Plans Inc. of Connecticut currently has a Best's Financial Strength Rating of A (Excellent).