Anthem Blue Cross warns clients about higher rates

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The price for private health insurance through Anthem Blue Cross is going up in 2018, according to letters that policyholders are receiving in the mail.

Wochit

The cost of private health insurance is going through the roof for some Shasta County residents.

Anthem Blue Cross of California, a favored insurance company in the Redding area for its prices and availability, recently sent letters to policyholders warning of steep premium hikes -- ranging from 17 percent to 60 percent and even higher -- for 2018.

Redding insurance broker Margaret Beck says the letters are both confusing to customers and annoying to agents.

First, Anthem is telling clients it won't be offering the same plan they had this year and the rate for a replacement policy is going up.

For Beck, about 70 percent of her clients with individual health insurance use Anthem Blue Cross. What's frustrating to her is that Anthem is saying those estimated increases may not be final and that a company website says "rates are not available at this time, contact your agent."

"It's ridiculous," Beck said Tuesday. "(Anthem's letter) refers clients to a website that's not up and running. Anthem has given us nothing to tell when the rates will be available to us."

Beck said customers will have to know the prices by Nov. 1 when open enrollment begins in California. One hangup is that state regulators haven't approved rates submitted by insurance companies by Sept. 30. Beck is telling her clients "to sit tight."

"My biggest fear is these rates are accurate," Beck said.

Beck said Blue Shield, another carrier that's available, has announced rate increases of about 17 percent.

What's causing more worry is that people who have Anthem Blue Cross through Covered California also are receiving the rate-hike letters, but are not being told the amount of their government subsidy that lower-income consumers get through the Affordable Care Act.

Beck doesn't foresee rates going up as much for those getting insurance through Covered California. "People who are subsidized will probably not see a huge difference," but she said that depends on continued reimbursement by the federal government.

"It's the people not on the exchange who will really feel this," she said.

Bob Bishop, another Redding insurance agent, said Covered California representatives predicted in August that their clients could experience increases of between 12 percent to 14 percent for 2018.

He said Anthem Blue Cross is popular in Shasta County for its competitive rates compared to Blue Shield. Beginning in 2018, Anthem Blue Cross said it's offering plans in only three regions of Northern California: Redding, Santa Clara County and the Stockton/Modesto area.

Bishop has health insurance through Anthem and his letter says his rate is going up 49 percent, for an additional $320 a month, for his high-deductible plan. He said the cost of his young granddaughter's plan is expected to rise 77 percent.

He knows of a 64-year-old woman with a $75 deductible under a subsidized Anthem Blue Cross plan through Covered California who's paying $2 a month with a subsidy. Her letter says starting Jan. 1, her monthly premium will increase about $519, or 55 percent, to $1,461, but that's not including the subsidy.

Bishop hopes Anthem will release its rates as soon as this week so he'll be able to give cost comparisons with Blue Shield. He said he's aware of alternatives to the traditional plans and is willing to discuss those, too, with customers.

Anthem Blue Cross spokeswoman Suzanne Zagata-Meraz confirmed Tuesday that members are being notified through letters of the price increases, but she was unable to provide details by Tuesday afternoon.

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