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Health Insurance Provider Subject Of State Probe

Anthem Blue Cross Under Scrutiny Over Premium Hike

POSTED: 6:57 pm PST February 22, 2010
UPDATED: 7:55 pm PST February 22, 2010

Health insurance provider, Anthem Blue Cross, has begun to feel the heat on several different fronts. With a presidential plan unveiled, a state investigation was revealed that has led to hundreds of allegations.

North Park resident Scott Nisley was watching it all closely. Earlier this month, Nisley, an Anthem Blue Cross customer, received a letter informing him his premiums were going up.

He said, "I felt ripped off. I was very angry."

Joe Fernando of Mission Hills also got the letter. After his premium jumped an extra $120 a month, Fernando told 10News, "I crossed out my card. It was so frustrating," he said.

Fernando, who was laid off a year ago from a job at a post-production media company, added, "It was like salt on the wound, when I have a limited income."

President Obama's just-unveiled health care proposal is giving the federal government the power to block premium increases deemed unjustified, and Sen. Dianne Feinstein will introduce the legislation this week.

Anthem Blue Cross’ parent company, Wellpoint, has defended the increases, saying their profits are inline with competitors. Wellpoint's last quarterly earnings totaled $2.7 billion.

Fernando remarked, "It's like robbing from the poor during some tough times."

California Insurance Commissioner Steve Poizner announced that a probe into Anthem Blue Cross turned up 700 complaints.

Poizner said, "It's really hundreds of allegations having to do with not paying claims completely, slowly and not on time."

It did not take much time for Fernando and Nisely to make up their minds about their insurance -- both plan to find another insurer.

Anthem Blue Cross has agreed to postpone the rate hike until May.

Meanwhile, an administrative law judge will rule on the allegations against Anthem Blue Cross. If the company is found responsible, it faces a fine of $10,000 per complaint.
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