"In this economy we've seen everybody tightening their belts.  Businesses across the state are having to layoff employees, cut pay and hours-- reduce insurance benefits, just to get by.  The fact that Anthem Blue Cross Blue Shield is asking to raise its rates yet again this year is unconscionable. Anthem makes record profits. In Maine alone, the company made $75 million in profits in 2007 and $51 million in profits in 2008.  They don't need anymore increases in profits.  We need to see our rates decreased, and these companies to make the same tough decisions other businesses across the state and country are making-to cover any perceived need for an increase with some of those overall profits.

Since May 2000 when Anthem bought Maine's non-profit insurer Blue Cross and Blue Shield, it has made exorbitant profits. In the individual market alone (one of the areas it is asking to raise rates) the company made $17.4 million in profits on a pre-tax basis from 2000 - 2008. At the same time it has shifted more and more costs onto the policyholder. The company's high deductible plans -- plans that require the policyholder to pay the full costs of their care up to the $5,000, $10,000, or $15,000 deductible -- enable it to make huge profits on a service that is essential to the health and well-being of Mainers. The average deductible was $7,250 in 2008 and was projected to grow to an average $7,570 in 2009.

Nationally and locally regulators are beginning to look at the rating practices of this company.  President Obama talks about the issue in his recent proposal.  Secretary of Health and Human Services Kathleen Sebelius decried Anthem's proposed rate increase in California in a letter and report. Maine Senate President Libby Mitchell and House Speaker Hannah Pingree have written a letter asking Congressmen Henry Waxman and Bart Stupak to include Anthem's Maine subsidiary in its investigation of Anthem Wellpoint by the Subcommittee on Oversight and Investigations of the Committee on Energy and Commerce.

Maine's insurance superintendent granted Anthem a rate increase of almost 11% last year, yet the company sued the State of Maine because the company believes it is entitled a guaranteed profit. The national media is now picking up what is happening in Maine, California and Oregon. In these times, with so many going without work and losing their employer provided coverage, they need good coverage that is affordable.

Anthem's individual policyholders have contributed significantly to the huge profits that the company is pulling out of Maine and sending to its investors on Wall Street. It is time for this company to put more of that money into better coverage and into lowering health care costs in Maine.

Thousands of Maine families will be affected by the increases that Mega and Anthem are asking for.  Here in Maine, while we wait to see how the national investigation goes, we hope our Superintendent of Insurance will be able to come up with a fair solution to protect our hard-working families. People don't have the power to negotiate their rates with insurers, that's why we have regulators.  Maine people who are not insured by an employer plan need protection from Anthem. Anthem holds a monopoly share of the Maine insurance market. Therefore, the company needs to be regulated to protect Mainers who work hard, play by the rules, pay their premiums, contribute to the overall profits of the company, and yet are sold worse and worse coverage. That's just not fair. When it comes to a rate increase to a highly profitable company or protecting the public interest, the public interest must prevail."