Ten Times the Rate of Inflation

Feb 9, 2010 9:14am

As we covered yesterday, the Obama administration is demanding answers from California's largest insurance company, Anthem Blue Cross, as to why  the company is suddenly raising premiums on some customers by up to 39 percent — more than 10 times the rate of inflation.

“I really can't afford to spend $9000 a year on health insurance,” said San Francisco attorney and Anthem Blue Cross insured Pamela Fasick. 

Her premiums are going up 28 percent beginning March 1. 

“I would hate to give up insurance at this point in my life, but I wouldn't be able to pay that money out of my income without going into debt,” she told ABC News in a segment that ran on this morning's Good Morning America: 

Health and Human Services Secretary Kathleen Sebelius has insisted the company justify the rate increase in detail to her agency.

“We need to make sure that companies are spending their money on health claims, not on overhead costs,” Sebelius told us in an interview.

Anthem Blue Cross's parent company Wellpoint Incorporated earned a record $2.7 billion in profits in just the last quarter of 2009.  Its sales for the same quarter grew to $19 billion, up from $15.1 billion — a 26% rise.

For more on this story, click HERE.  

-jpt

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