Letter from Iowa Governor Prompts Wellmark to Delay Rate Hike

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Iowa’s largest health insurance provider will delay a planned premium increase after Gov. Chet Culver raised questions about the higher rates to the state insurance commissioner.

Culver sent a letter to Insurance Commissioner Susan Voss, expressing concern about Wellmark Blue Cross and Blue Shield’s average 18 percent increase in premiums for roughly 80,000 Iowans with individual policies. He asked Voss to hire an independent actuary to review Wellmark’s proposed increase, and directed that such a step should be taken whenever a health insurer proposes a rate increase.

He also told Voss to seek “other practical ways” to inform consumers and state officials about her office’s rate review process, and he called for an annual report on how Iowa’s health care costs compare with other states.

“It is apparent that many Iowa citizens are not fully satisfied with what they now understand about the division’s health insurance rate approval process and any underlying reasons that may – or may not – justify health insurance premium rate increases,” Culver wrote in the letter.

Wellmark Blue Cross and Blue Shield is the largest health insurance provider in Iowa, with about 71 percent of the market.

The rate increase had been planned for April 1, but Wellmark spokesman Rob Schweers said it would be delayed until May 1 to allow for the independent examination that Culver sought.

Schweers said company officials have no doubt investigators will find the increase necessary to meet higher health care costs.

“We’re confident the independent review will show that we have formulated our rates in good faith and with the best interest of our policy holders in mind,” Schweers said.

Culver’s letter followed action last week by legislators, who questioned Voss and Wellmark officials about the large increase.

Voss told lawmakers that she faces a dual challenge of protecting consumers while assuring that health insurance companies are financially sound.

Associated Press writer Molly Hottle contributed to this report.