Anthem appeals Maine's rate decision

NEWS IN BRIEF — Posted Oct. 25, 2010

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For the second consecutive year, Anthem Blue Cross and Blue Shield of Maine has challenged the state insurance superintendent's decision to approve a lower-than-requested rate increase for Anthem individual health insurance.

Insurance Superintendent Mila Kofman denied Anthem's request to raise rates by an average of 23.1%, which the company calculated would allow it to make about a 3% profit margin for the year. Instead, Kofman approved a 14.1% average increase, which would result in a projected 0.5% profit margin. As of November 2009, nearly 11,000 people were enrolled in Anthem products under consideration.

Kofman cited the same reasons for this year's decision as she gave for lowering Anthem's rate increase the year before. That decision gave Anthem a 0% profit. Anthem challenged Kofman's 2009 rate decision, asserting that it has a right to make a reasonable profit. A Superior Court judge upheld Kofman's decision in April, and Anthem's appeal of that court's decision remains pending.

Note: This item originally appeared at

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