Anthem hears from feds

Huge premium increases for individual policyholders of Anthem Blue Cross have caught the attention of Health and Human Services Secretary Kathleen Sebelius, who asked the Woodland Hills-based insurer to explain itself. From the LAT:

"With so many families already affected by rising costs, I was very disturbed to learn through media accounts that Anthem Blue Cross plans to raise premiums for its California customers by as much as 39%," Sebelius wrote to company President Leslie Margolin. "These extraordinary increases are up to 15 times faster than inflation and threaten to make healthcare unaffordable for hundreds of thousands of Californians, many of whom are already struggling to make ends meet in a difficult economy."

The increases, which are scheduled to go into effect March 1, would put insurance coverage out of reach for some. California regulators are looking into the price hikes. The state, really more so than the feds, are in the best position to intervene.