Rate Rises Weren’t Related to Takeover

Regarding “Awaiting Agency’s Scrutiny of PacifiCare” (Golden State, July 21):

We at Blue Cross believe it’s important to clarify certain points in Michael Hiltzik’s column.

First and foremost, we have kept our promise to our members and the state of California that any rate increases would not be related to the acquisition of WellPoint Health Networks Inc. by Anthem Inc.

Some Blue Cross plan members experienced a rate increase this year. However, these increases were not related to the merger in any way, as Hiltzik suggests. Testimony regarding the cost drivers of premium increases was detailed at a public meeting with state regulators May 13 in Sacramento.

Hiltzik also used figures that lead your readers to believe that recent rate increases were higher than what they actually were. In fact, Blue Cross’ statewide average rate increase was approximately 13%, considerably lower than those of our competitors that offer similar plans.

We also disagree with Hiltzik’s comments about the value of our financial commitments to the state. Since the close of our merger, we have helped to establish several vital programs, including contributing $35 million for Community Clinics and $15 million to increase the number of nurses in California. Further, we have made a commitment to invest $200 million of our portfolio to benefit underserved communities in California that will be manifested over the next 20 years.

David Helwig

President

and Chief Executive

Blue Cross of California

Thousand Oaks