California's Largest Health Insurer Defends Premium Increases of Up to 39 Percent
By JAKE TAPPER
WASHINGTON, Feb. 9, 2010
The Obama administration is demanding answers from California's largest insurance firm, Anthem Blue Cross, about why the company is suddenly raising premiums on some customers by up to 39 percent; more than 10 times the rate of inflation.
White House wants Anthem Blue Cross to justify nearly 40 percent hike.
Nearly a million Californians with individual insurance plans have received letters from the company notifying them of the rate hike, which, some customers said, makes their insurance unaffordable.
"I really can't afford to spend $9,000 a year on health insurance," San Francisco attorney Pamela Fasick said of her policy premiums scheduled to increase 28 percent March 1.
"I would hate to give up give up insurance at this point in my life, but I wouldn't be able to pay that money out of my income without going into debt," she said.
Is this going to be the norm if Health Care does not pass?