Indianapolis-based WellPoint is withdrawing its controversial request for a 39% rate hike in California, citing mathematical errors.
Insurance giant Anthem Blue Cross withdrew plans to raise health insurance rates for Californians by as much as 39 percent after an independent audit determined the company’s justification for raising premiums was based on flawed data, state Insurance Commissioner Steve Poizner said Thursday.
Anthem, a unit of Indianapolis-based WellPoint Inc., said separately it will file a new application for a rate increase with the California Department of Insurance and the Department of Managed Health Care, perhaps as early as next month. It added that any errors in its original application were inadvertent.
“The current application that was withdrawn today was just flawed,” Poizner said during a conference call with reporters. He added that it contained mathematical errors and in some instances double counting of data.
Neither Poizner nor Anthem officials said just how big the insurance giant’s next proposed increase would be.
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