Anthem Blue Cross and Blue Shield Rate Filing : Bureau of Insurance

STATE OF MAINE
DEPARTMENT OF PROFESSIONAL AND FINANCIAL REGULATION
BUREAU OF INSURANCE

IN RE:

ANTHEM BLUE CROSS AND BLUE
SHIELD 2009 INDIVIDUAL RATE
FILING FOR HEALTHCHOICE,
HEALTHCHOICE STANDARD
AND BASIC, AND LUMENOS
CONSUMER DIRECTED HEALTH
PLAN PRODUCTS

Docket No. INS-09-1000

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UPDATE REGARDING
ANTHEM REVISED RATE
INCREASE REQUEST

On January 16, 2009, I issued a Notice of Pending Proceeding and Hearing in the above-captioned matter. That Notice set a public hearing on Anthem’s filing at 9:00 a.m. on March 12, 2009, in the Central Conference Room, Department of Professional and Financial Regulation, Gardiner Annex, 122 Northern Avenue, Gardiner, Maine. In addition to the March 12th hearing, Anthem policyholders and other members of the public may provide comments for my consideration at public input sessions that I am holding at the following times and places:

Orono:
March 3, 2009, beginning at 5:30 p.m.
Room 3, Wells Conference Center
University of Maine
Orono, Maine

Portland: March 10, 2009, beginning at 5:00 p.m.
Talbot Lecture Hall
Luther Bonney Hall
University of Southern Maine
Portland, Maine

Comments may also be provided for my consideration in this matter as follows:

By email:
Pat.Galouch@maine.gov

By mail: Superintendent of Insurance
Attn: Pat Galouch (INS-09-1000)
34 State House Station
Augusta, Maine 04333

In the Notice I also set the intervention deadline at February 3, 2009, and the Maine Attorney General has petitioned for and been granted intervenor status as of right. Anthem and the Attorney General are the only parties to the proceeding.

Subsequent to my Notice, on January 21, 2009 Anthem revised its filing for its HealthChoice, HealthChoice Standard and Basic, and Lumenos Consumer Directed Health Plan products. Anthem’s initial filing and its revised filing are described below. As of November 2008 there are 12,049 policyholders who will be affected by Anthem’s proposed rate revisions.

Initial Anthem Filing

As identified in my Notice, Anthem initially proposed revised rates for the identified products that it asserted would produce an average increase of 14.5%. As identified in its filing, the largest premium increase depending on deductible level and type of contract for HealthChoice is17.2%, for HealthChoice Standard and Basic is 7.7%, and for Lumenos is 34.1%. Anthem initially requested that these rate revisions become effective on May 1, 2009.

Revised Anthem Filing

As explained in Anthem’s January 21st revised filing, given the March 12th hearing date and that the Superintendent has 30 days from the close of the evidence to issue a decision, a July 1, 2009 rate effective date appears more realistic (as opposed to its initial requested May 1, 2009). Accordingly, Anthem revised its actuarial analysis with updated data and reflecting a July 1, 2009 effective date. Based on its revised analysis, Anthem now requests approval of revised rates with an average increase of 18.1%. As identified in its revised filing, the largest premium increase depending on deductible level and type of contract for HealthChoice is 23.6%, for HealthChoice Standard and Basic is 9.5%, and for Lumenos is 37.8%. Anthem requests that its revised rate filing become effective on July 1, 2009.

February 25, 2009

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MILA KOFMAN
Superintendent of Insurance