The state of California, more specific ally the CA Dept. of Insurance, has called the proposed April 2013 rate increase by Anthem Blue Cross Life and Health Insurance company, “excessive and unreasonable.”

The increase will affect their small group health insurance policyholders.  For some the increase is as high as 22.9%.  This is alarming because as reported by the CA Dept. of Insurance, Anthem Blue Cross “posted a return on equity of 25.2%.”  The increase will affect 45,000 policyholders from 7,000 companies.

But the CA Dept. of Insurance is essentially powerless as California law does NOT prohibit health insurers from “excessive” rate increases.  State law does allow them to overturn excessive rate increases for auto, homeowners and malpractice insurance.

The department requested Anthem Blue Cross reduce rather increase the rate based on their profitable 2012.  It appears Anthem has declined to do so.

For health insurance agents and lead generators who represent companies other than anthem Blue Cross this may present an opportunity to get in the door of these firms and offer them something new.  For Affiliates, we recommend getting content on your site that will address the concerns of small business and their ever increasing health insurance premiums.