Congress Launches Inquiry into Anthem's Proposed Premium Hikes

Sebelius said the proposed increase was "difficult to understand" given WellPoint's $2.7 billion profit in the fourth quarter of 2009.

In launching its inquiry, the congressional committees requested the testimony of Angela Braly, the president and CEO of Wellpoint. The committees said they wanted to hear from the company no later than Friday if she would agree to the request. The committee also sought in a letter to Braly:

• Internal communications, including e-mail, to or from senior corporate management relating to the company's decision to increase premium rates in California. The committee referred to senior corporate management officials as levels of vice president and above for Anthem Blue Cross and WellPoint Inc.
• All presentations to senior corporate management, or government agencies, relating to the increase in premium rates in the individual health insurance market.
• A detailed explanation of the reasons for the proposed rate increase.
• For each year from 2005 to 2008, a table listing, as appropriate, premium revenue, claims payments, sales expenses, and other general or administrative expenses, and profits for all individual health insurance products, including an explanation of the methodology used for these calculations.
• A table listing all proposed premium increases from January 1, 2009 through December 31, 2010 in the individual health insurance market for all WellPoint subsidiaries, including the amount of the proposed premium increases, the subsidiary, the state affected, and a detailed explanation of the reasons for the increase.

WellPoint company spokesman Kristin Binnis says the insurer is "reviewing [the congressional request] at this time." The company also expects to reply to Sebelius's letter "promptly," she said.