Court dismisses Anthem rate appeal
The Maine Supreme Judicial Court has thrown out health insurer Anthem's appeal of the state's decision to limit its 2009 rate increase for individual policies to 10.9%.
In a 5-2 ruling yesterday, the court dismissed Anthem's appeal as moot because the timeframe covering the disputed rates has passed and new rates are in effect, according to The Associated Press. Anthem previously requested an 18.1% increase for individual policies for 2009, but Insurance Superintendent Mila Kofman rejected that increase, instead limiting it to 10.9%. The company appealed that decision to the Maine Superior Court, which last May affirmed Kofman's decision, leading Anthem to bring its appeal to the high court. Anthem argued the state's rate would leave it with a profit margin of zero.
In a dissenting opinion, two justices argued the process should continue in order to address the recurring dispute between Anthem and the state over rate increases. Last year, the state granted Anthem a 14% increase, instead of the 23% it requested. The state's Bureau of Insurance is still considering the company's 10% increase for 2011 rates, which would go into effect in July.
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