Anthem Blue Cross CEO To Step Down

July 20--The chief executive officer of the embattled insurer Anthem Blue Cross announced today that she would be stepping down to help launch a coalition of groups aimed at transforming the state's health care system.

As CEO of the state's largest health insurer, Leslie Margolin came under fire for defending controversial rate hikes that would substantially increased premiums for more than 700,000 Californians who buy coverage on their own. Some subscribers could have seen rates surge by as much as 39 percent.

But the rate hikes were later rescinded after the state Department of Insurance found flaws in the company's calculations. The company last month said it would still raise rates, but far most modestly.

Margolin acknowledged the controversy in a statement she released today, but defended her record at Anthem Blue Cross.

"I was brought in to lead a turnaround for Anthem in California. The commercial book of business under my control exceeded goals far beyond anyone's expectations. With the turnaround foundation firmly set, now it is time for a transformation of our entire health care delivery system," Margolin said in a statement.

Margolin will take the helm of Transforming Health Care, which calls itself a coalition of hospitals, physicians groups, health plans, employers and consumer advocates.

"We cannot afford to fight each other any longer. I took on the challenge of bringing the parties together as Anthem's President, and I am grateful to have had the platform to begin this process. It has become my passion, and I have therefore decided to leave the company to devote my full energies to what I consider to be the most important work of my career."

Blue Cross confirmed Margolin's departure. Her final day with the company was Monday.

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