The divide between populist politicians and the polished health insurance industry was never so stark as during the hearing yesterday before the Assembly Health Committee.
Assemblyman Dave Jones, D-Sacramento
The central question was whether Anthem Blue Cross planned to go through with its plan to boost some rates by 39 percent. (The answer? Yes. More on that below.)
The most pointed question to the health insurer came from committee chair Dave Jones, D-Sacramento: “Have you no shame?”
Here’s the exchange between Jones, who is running for state insurance commissioner, and Leslie Margolin, Anthem Blue Cross’ president, as reported by Capitol Public Radio:
Jones: My constituents and the constituents of all of my colleagues are trying to hold on to their homes, hold on to their jobs and feed their families. Instead, you’re insisting on doing an up to 39 percent rate hike at the expense of these people. My last question of you, as the President and you, as a WellPoint Vice President is, have you no shame?
Margolin: The President is one that is disappointing to me, Mr. Chairman. It is disappointing to me. It is disappointing to me on my own behalf, and it is disappointing to me on behalf of everyone who works at Anthem Blue Cross.”
The upshot of the hearing? The insurer will continue to seek the rate hike. The Los Angeles Times summarized how that might work:
The California Department of Insurance will allow Anthem's rate increases only if outside actuaries certify that the company spends at least 70% of its premiums on medical claims, as required by state law, a department spokesman said. That review should be finished by mid-April. Anthem officials have said they meet the standard.
If the spending falls below the 70% level, "we will exercise our full regulatory authority to force them to lower their rates," department spokesman Darrel Ng said. "Our rule is to ensure they follow state law. The company has been consistent with asserting that its rates are legal."
Comments
via Twitter