As reported in the New York Times today,  Anthem has provided “Exhibit A” for Health Reform.

Anthem Blue Cross, has agreed to delay the rate hikes in California until Insurance Commissioner Steve Poizner has had time to review whether Anthem has spent at least 70% of premiums on health claims, as required by state law. In this case, it will probably mean just a 2 month reprieve for consumers from the outrageous rates.  (Even though Wellpoint posted record profits in the last quarter of 2009, this review is limited to the California individual market.)

Consumers deserve full disclosure about how much of their premium dollars goes towards actual health care services – and how much goes towards lobbying to defeat health reform, advertising, and administrative overhead –bonuses fall in this category.

Federal bills would require 80% of premiums be used for health services in the small groups and indiviudal markets and 85% in the large group markets.

Check out these blogs for more information about how health reform would help prevent these rate hikes:

Anthony Wright at The Treatment, the health policy blog of The New Republic and Ezra Klein at The Washington Post.

The CA Assembly Health Committee will hold a hearing on the premium increases on February 23rd.  On th 24th, Energy and Commerce Committee Chairman, Subcommittee on Oversight and Investigations will hold a hearing.