Anthem Delays Rate Hikes as California, Feds Turn up Heat

Anthem's proposed rate hike has come under criticism by the Obama Administration, with HHS Secretary Kathleen Sebelius accusing the company of leaving its customers with potentially "bad options: pay more for coverage, cut back on benefits or join the ranks of the uninsured. " Sebelius said she could not understand why the company would need a "massive increase" after its parent company, WellPoint, made $27 billion in the last quarter of 2009.

Anthem's proposed premium increases have also prompted an inquiry on Capitol Hill. The House Committee on Energy and Commerce and its subcommittee on oversight and investigations said they would examine the proposed rate hike increases affecting California's largest for-profit insurer. The subcommittee has scheduled a Feb. 24 hearing in Washington about the proposed increases. Angela Braly, the president and CEO of WellPoint Inc., the parent company of Anthem—was called to testify.

In California, state Assemblyman Dave Jones, D-Sacramento, chairman of the Assembly's Health Committee, announced plans to hold a Feb. 23 hearing on the topic.