Explaining rate hike

Here's why we need health insurance reform: Wellpoint says it has to raise premiums up to 39 percent for some California customers because healthy people are either dropping coverage or going to cheaper plans. That leaves older, sicker people - and we can't have too many of those around. From AP:

The decline in premium revenue means there's less money to cover claims from sicker customers who are keeping their coverage. That resulted in a 2009 loss for the unit. The insurer says its 2010 rates aim to cover the shortfall expected from the continuation of that trend. "When the healthy leave and the sick stay, that is going to dramatically drive up costs," Brian Sassi, who heads WellPoint's consumer business unit, said in an interview with The Associated Press.

Sassi explained the decision in a letter to Health and Human Services Secretary Kathleen Sebelius, who earlier this week questioned the rate hike.