The insurer had delayed the increases till May 1 pending a review by an outside actuary appointed by the state insurance commissioner. That report is expected within two weeks.
Thousands of worried Californians who buy individual insurance policies from Anthem Blue Cross will soon learn whether they face rate increases of up to 39% that were put on hold for two months amid a public outcry that helped revive national healthcare legislation.
California’s largest for-profit health insurer agreed to postpone the increases for many of its 800,000 individual policyholders until May 1 while an outside actuary, appointed by state Insurance Commissioner Steve Poizner, evaluated its spending practices.
The actuary report from Axene Health Partners is expected within two weeks.
Poizner said in February that he would stop Anthem’s rate hikes if the report shows that the Woodland Hills insurer spends less than 70% of its premium dollars on medical claims, as required by state law.
At the time, Poizner said that Anthem’s proposed increases could have a “devastating financial impact on hundreds of thousands of its policyholders in California.”
Poizner did not respond to requests for an interview. On Friday, representatives from his office and Anthem’s parent, WellPoint Inc., said the two sides had yet to address the rate hikes despite ongoing speculation that WellPoint might delay them an additional 30 days or limit the increases to 10% to 15% through the end of the year.
Poizner’s office is awaiting the actuary’s study. “Our next action is predicated on what the report says,” said Darrel Ng, a spokesman for the Department of Insurance.
A WellPoint spokeswoman acknowledged Friday that the Indianapolis insurer will not have adequate time to notify customers of any changes within two weeks. The company, Kristin Binns added, has no agreement with Poizner to extend the delay 30 days.
“No formal decision has been made yet, but it’s unlikely we’ll be in a position, given the timing, to implement any rate increase May 1,” Binns said. “It’s unclear at this point what happens.”
Frustrated policyholders say they have heard nothing from Poizner’s office and little from Anthem beyond a letter in early March informing them that their rates would not change for 60 days.
“I don’t know what we are going to do,” said Mary Feller of San Rafael, Calif., who faces a 39% increase for herself, her husband and daughter that would push the family’s annual insurance bill over $25,000.
