Letter To Chairman Henry Waxman, Committee On Energy And Commerce

Letter

Legislative Leaders Call For Investigation Into Anthem Rate Increases

Congresswoman Chellie Pingree today joined Maine Legislative leaders in calling for Congressional investigation of rate increases by Anthem Blue Cross Blue Shield of Maine.

"The rate increases that Anthem has requested in Maine are outrageous," Pingree said. "And with very little competition in Maine, they seem to think they can get away with it."

Congresswoman Pingree joined the Maine legislators in asking that a Congressional committee expand its investigation of Anthem rate increases in California to include Maine. Like the Maine Legislators, Pingree has sent a letter to Congressman Henry Waxman, Chairman of the House Energy and Commerce Committee, asking him to investigate rates in Maine. In the letter, Congresswoman Pingree wrote:

"Time and time again, Anthem has demanded rate increases that are many times the rate of inflation and this is putting health care insurance out of reach for more and more Maine families. With a monopoly on the individual insurance market in Maine, consumers often have little choice and are forced to either pay escalating premiums or go without coverage."

Full text of Pingree letter is below.

Last month Pingree wrote to Anthem Blue Cross Blue Shield of Maine President Daniel Corcoran asking that Anthem pay $500,000 in claims made by VA Togus. Anthem agreed to allow the claims to be resubmitted and last week began paying those claims.

February 12, 2010
Chairman Henry Waxman
Committee on Energy and Commerce
2125 Rayburn House Office Building
Washington, DC 20515-6115

Dear Chairman Waxman:

Thank you for your leadership and dedication to reforming our health care system. I share your belief that insurance regulation is a key component of health reform, and I appreciate the commitment of the Committee on Energy and Commerce and its Subcommittee on Oversight and Investigations to investigating recent Anthem Blue Cross rate increases in the California market. I respectfully request that you consider expanding the scope of this investigation to include the state of Maine, where we have been faced with similarly excessive rate hikes in our individual insurance market.

As outlined in a February 12 letter from Maine State Legislative leaders, Anthem has consistently proposed unreasonable rate increases that would create extreme financial hardship for thousands of residents in Maine. Our State Superintendent of the Bureau of Insurance Mila Koffman, and State Attorney General Janet Mills fought valiantly to ensure that these increases were not enacted. As of January 4, 2010, however, Anthem has once again filed for a 22.9% rate adjustment for its HealthChoice and Lumenos products, leaving nearly 11,000 policyholders potentially affected by the proposed rate increase.

Time and time again, Anthem has demanded rate increases that are many times the rate of inflation and that are putting health care insurance out of reach for more and more Maine families. With a monopoly on the individual insurance market in Maine, consumers often have little choice and are forced to either pay escalating premiums or go without coverage.

I firmly believe that Maine's experience with Anthem is worthy of your ongoing investigation. Additionally, I hope you will consider including representatives from Maine in any future hearings you schedule, including your February 24, 2010 hearing in the Subcommittee on Oversight and Investigations. I know that our state leaders are ready to serve as valuable resources in this critical investigation. Consumers in California and Maine should not be forced to shoulder the burden of these excessive rate increases, and I look forward to working with you and the rest of my colleagues in the 111th Congress to determine the root of this problem and to enact meaningful reform to prevent future abuses in the insurance market.

Sincerely,

Chellie Pingree
Member of Congress

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