New Report On Rising Insurance Rates Highlight Need For Reform

Statement

Congresswoman Chellie Pingree today reacted to an Obama Administration report highlighting dramatic insurance rate increases in a number of states, including Maine.

"The rate increases that Anthem has asked for are outrageous," Pingree said. "They are demanding rates that are going up many times faster than the wages of working Maine families. And Anthem's claim that they don't have any choice just doesn't pass the straight face test when they are raking in record profits and paying their CEOs millions of dollars."

The report (available online) highlighted Anthem's request for a 23% rate increase in Maine, on top of a requests 19% increase last year. The report also details the rapidly rising profits of the big insurance companies--profits for the ten largest insurance companies increased 250 percent between 2000 and 2009, ten times faster than inflation. Last year the five largest health insurance companies took in combined profits of $12.2 billion, up 56 percent over 2008. And last year the national CEO of Anthem was paid $9.8 million.

"According to the report, that means a family of four may find themselves paying $1,876 a month for health insurance in Maine," Pingree said. "That's unaffordable for many Maine families."

Pingree says the report highlights the need for comprehensive health care reform.

"This is another example of how badly we need to pass health care reform that cracks down on the big insurance companies and gives them some competition," she said.

Last week, Pingree wrote to House Energy and Commerce Committee Chair Henry Waxman, asking him to include Maine in a Congressional investigation into Anthem's proposed rate increases.

Source