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39% Premium Increase in California for Anthem

February 9th, 2010

Anthem Blue Cross in California has announced premium increases of up to 39% for its members and have defended that increase in a letter to Health and Human Services Secretary Kathleen Sebelius. As pointed out in that letter, the “39% figure” is the worse case scenario for some members.

Anthem blames the need for the increase on declining membership and skyrocketing medical costs.

So, just for curiosity, I took a look at WellPoint, Inc.’s end of 2009 financial report. WellPoint owns Anthem in California. In fact, they probably own a significant share of any health insurance in your state. “WellPoint is the nation’s largest health benefits company, with approximately 34 million members in its affiliated health plans.”

Let’s discuss SG&A expenses.

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Tags: Anthem, Premium Increase
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