Wellmark delays rate increase after pressure from Iowa officials

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Another large health insurance company has postponed its proposed rate hike amid questions from state officials, this time in Iowa.

Wellmark Blue Cross and Blue Shield, which covers more than 2 million members in Iowa and South Dakota, announced it would delay a proposed rate hike by 30 days, following a request by Iowa’s insurance commissioner and an order to justify the increase by the state’s governor.

Chet Culver

Gov. Chet Culver issued a March 8 letter to Susan Voss, commissioner of the Iowa Insurance Division, calling for her office to halt the proposed 18% rate increase affecting an estimated 80,000 Iowans until an independent, actuarial review can be performed.

Culver, in a statement, said he shares the concerns of many Iowans that the recent health insurance premium rate increases in his state and nationally “are a disturbing and unwelcome surprise.” He directed Voss to take several actions to provide additional protections for consumers, including the independent review for the Wellmark request, the implementation of secondary reviews for future health insurer premium requests reviewed by her division and the production of an annual report to his office on current trends in health care costs.

Culver said his administration can and will ensure that any health insurer rate increases imposed on state residents “are fair and completely justified.”

In a statement to IFAwebnews.com, Rob Schweers, a Wellmark spokesman, said the health insurer plans to “cooperate fully” with Voss on an independent actuarial review of the data supporting its rate hike request.

“At the request of the commissioner, we have voluntarily agreed to postpone the effective date of the increase for 30 days—from April 1 to May 1—in order to allow the independent review to be completed,” Schweers said.

The delay for Wellmark comes amid national attention to premium increases that began when another Blue Cross Blue Shield Association affiliate, Anthem, owned by Wellpoint, requested rate hikes in California that could top as much as 39% for some of its customers.

That request drew the ire of California Insurance Commissioner Steve Poizner and U.S. Health and Human Services Secretary Kathleen Sebelius, who used the Anthem request as a prime example of why the federal government needs to get involved in such requests and the need for comprehensive health reform beginning in Washington, D.C.

Anthem, like Wellmark, agreed to an independent review by regulators and a delay in enacting the proposed increase.

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