California Health Insurance Provider Anthem Not To Charge 39% More

Armen Hareyan's picture

HHS Secretary Kathleen Sebelius welcomes California Health Insurance provider Anthem's decision to withdraw its proposed 39 percent health insurance rate increase. The health care reform bill now will ensure people across America have access to affordable health insurance.

She said Anthem's announcement is a "good news."

Indeed Anthem's withdrawal of the proposition to charge 39 percent more for health insurance premiums is a good news for California residents. More than 800,000 people in California use Anthem as their health insurance provider. These people have already been hit by a massive rate increase and a new one was going to come with a proposed 39 percent of premium increase.

The current decision by Anthem, announced today, gives these people who use individual and family health insurance plans a much needed relief.


Secretary Sebelius says people in California, who oversee the state's health insurance industry worked very hard. They heard people's voices coming from across the United States, made some investigations and demanded action from Anthem.

Many Americans across the nation raised their voices in support of the residents of California who use Anthem's health insurance plans. Eventually these voices were heard in appropriate overseeing establishments and today's result is that ahead of the Affordable Care Act Anthem withdraws its proposed 39 percent rate increase.

Thus, apparently it is possible to continue the business of providing health insurance without the increase of premium rates. One then wonders, what caused the rate increase proposal? Are there any other similar propositions around the nation that drive up the cost of health care and health insurance making access to health care not affordable to tens of millions of Americans. These are legitimate questions many Americans will ask.

Secretary Sebelius said her department and the newly created Office of Consumer Information and Insurance Oversight "will closely monitor" the health insurance and health care industry to ensure people get the quality health care that they deserve. Ahead of the Affordable Care Act's taking effect, she also said in a written release that her office will not hesitate to act preventing "exorbitant premium hikes."

Earlier in February Anthem said it will delay the propose health insurance price hike. Sebelius said that's not enough.

* California Aims Reining In "Affordable" Health Insurance Providers


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