Anthem fights state over rate hike
Anthem Blue Cross and Blue Shield yesterday asked a Cumberland County Superior Court judge to overturn a ruling over rate increases.
Anthem asked the court to overturn a decision made by Maine Insurance Superintendent Mila Kofman to limit some health insurance rates to a 10.9% increase, according to the Portland Press Herald. Anthem officials originally sought an 18% increase for individual policyholders that would have taken effect on July 1, 2009, which Kofman rejected. The court ruling will affect premiums for about 20,000 Mainers with individual Anthem policies.
Maine Attorney General's Office defended Kofman's ruling, saying Anthem's past profits enable it to withstand possible losses. Kofman told the paper Anthem's individual policies generated $17 million in profits from 2000 through 2008. But Chris Roach, Anthem's attorney, argued the individual insurance business has lost about $6 million overall in the past five years, according to the Maine Public Broadcasting Network. Justice Thomas Humphrey did not indicate when he would issue a ruling.
Anthem officials made a recent proposal calling for a 23% increase starting July 1, 2010 and the state has not yet ruled on that request. If the court rules in favor of Anthem, the decision on the current rate increase will go back to Kofman for an adjustment, according to the Press Herald.
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