Former Anthem Blue Cross president says she fought 39% rate hikes

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By Duke Helfand, Los Angeles Times
August 10, 2010

The abrupt resignation last month of Anthem Blue Cross' president is offering a glimpse of an internal struggle that has roiled California's largest for-profit health insurer for months.

Leslie Margolin was the public face of Anthem this year when it sought to raise individual insurance rates as much as 39%. The move triggered a backlash in Washington and Sacramento, where lawmakers accused Margolin and her corporate bosses at insurance giant WellPoint Inc. of trying to gouge unknowing policyholders.

Margolin, 55, generated headlines statewide when she was called to testify before angry lawmakers in the state capital. With television cameras rolling, the hearing's chairman stared her down and asked bluntly: "Have you no shame?"

Now, speaking publicly for the first time since her departure, Margolin says she had been chagrined over the rate hikes for the last year and had worked internally to get Indianapolis-based WellPoint to rescind them or scale them back, and to apologize.

"I thought the rates were too high," she said. "I thought the impact on our membership was too significant."

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http://www.latimes.com/business/la-fi-anthem-president-20100810,0,2813511.story

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1. For profit insurance companies indulge in legal theft!

The companies pocket huge money from premiums, try to limit payouts and have limited competition.

I say that health insurance should be sold like car insurance and life insurance. I would bet that the rates would change significantly if they had to compete in a more open marketplace.

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2. Well, I'm sure she has a paper trail a mile long about that

How about it, Ms. Margolin? What did you do, who did you talk with? And, since Blue Cross settled for a smaller rate increase than its requested 39%, it would seem that you prevailed. So why would you resign?

This doesn't smell right at all.