Sooo, right smack in the middle of a huge public discussion about health care, insurance costs, bills in Congress to regulate costs and providing health care, and demands by the President, the tone-deaf idiots at Wellpoint, owners of Anthem Blue Cross, decide to raise insurance rates in California by up to 39 percent. Let’s call it honestly – 40 percent.
Does the company have a death wish?
Now, it has no rate increase. My prediction – it never will get anything more than a token increase.
Publicity is now trained on this company and its billions in profits. It had a 50+ increase percent in profits during the last year – a year when supposedly the country was in the great recession.
In February 2009 Anthem Blue Cross in California had to reinstate a couple thousand members and pay a one million dollar fine. Why? Because it was dropping subscribers once they got sick and had expensive care.
And of course the California Insurance Commissioner is publicizing 700 recent legal violations by Blue Cross, and that fines of up to $10,000 per violation will be sought. That is $7 million in potential fines. Here’s hoping Wellpoint gets whacked. Another prediction: lots of lawyers are looking for potential angles to sue.
But that is nothing comparing to the whacking the company is about to take in Congress. If a bill is passed regulating health insurance at the national level, Wellpoint Anthem has only itself to blame. Instead of laying low they have pointed a huge bullseye on their back.