Help pack a million meals for struggling seniors on 9-11. Volunteer today



Driver Safety

Piggy bank on the road - AARP Driver Safety

Take the new AARP Smart Driver Course!

Happy African American couple

AARP Books

Visit the Books Section

Enjoy titles on retirement, Social Security, and becoming debt-free.

Jobs You Might Like

most popular


Future Shock, California Style

Obama slams Anthem Blue Cross health insurance rate hikes.

Hundreds of thousands of Californians like Mark Weiss, 63, are learning firsthand what a future without comprehensive health care reform might look like.

Weiss, who has been a self-insured Blue Cross member for 30 years, recently received word that health coverage premiums for him and his wife would climb some 35 percent—to $2,278 per month. “I’ve never seen anything like this,” said Weiss, a Los Angeles podiatrist. “It made me sick to my stomach.”

The quandary facing Weiss and other Californians insured by Anthem Blue Cross, the largest for-profit insurer in the state, echoed from the Pacific Ocean to the White House after policyholders received letters last week informing them that their insurance rates would jump as much as 39 percent.

President Obama and Health and Human Services Secretary Kathleen Sebelius warned that the aggressive rate increases illustrated what will happen across America unless Congress passes a health insurance overhaul soon.

Obama: rate increase threat to all

“If we don’t act, this is just a preview of coming attractions,” Obama said after Anthem’s rate hikes, which could affect as many as 800,000 families in California, were first publicized last week. “Premiums will continue to rise for folks with insurance; millions more will lose their coverage altogether; our deficits will continue to grow larger. And we have an obligation—both parties—to tackle this issue in a serious way.”

The warnings from Obama and state officials had an immediate effect.

Bowing to the growing political heat—and demands by federal and state legislators that the company testify in public to justify its rate hikes—Anthem announced Saturday that it would postpone raising rates until May 1.

But the company continued to maintain that its increases were legal, equitable and financially necessary—and analysts said it’s not at all clear that the company can be prevented from eventually boosting insurance premiums.

Americans over 50 at risk

California officials estimated that the average self-insured Anthem customer would be forced to pay an additional 25 percent in monthly premiums. Many customers over the age of 50 say it will be unrealistic, if not impossible, for them to find competing health insurance because of their age and preexisting medical conditions, which make them unattractive risks to other insurers. Some may find it impossible to afford any insurance at all.

Californians are hardly alone. In several other states, self-insured consumers are getting hit with premium increases of 15 percent or more while Congress wavers on whether to change the nation’s health insurance system.

On Thursday, Sebelius issued an HHS report highlighting premium increases across the country, calling them a “wake-up call” for health insurance reform.

“Over the last year, America’s largest insurance companies have requested premium increases of 56 percent in Michigan, 24 percent in Connecticut, 23 percent in Maine, 20 percent in Oregon, and 16 percent in Rhode Island, to name just a few states,” Sebelius said.

At the same time, the HHS report said that profits for the 10 largest insurance companies increased 250 percent between 2000 and 2009, 10 times faster than inflation. It said recent data show that the CEOs of America’s five largest insurers were each compensated up to $24 million in 2008.

In Indiana, the head of Anthem Blue Cross disclosed Wednesday that the average self-insured customer in the state saw his premium bill go up 21 percent this year. Robert Hillman testified at a hearing at the state Capitol after state insurance officials received formal complaints from six Anthem customers whose premiums were hiked as much as 38 percent.

In Indiana, as in California, Anthem argues that it needs to raise rates as health care costs continue to rise. In addition, it says the recession has forced many healthy people to drop their health insurance altogether, leaving the company to insure more of the sick and elderly.

Topic Alerts

You can get weekly email alerts on the topics below. Just click “Follow.”

Manage Alerts


Please wait...

progress bar, please wait

Tell Us WhatYou Think

Please leave your comment below.


The Cheap Life

Jeff Yeager Cheap Life Ultimate Cheapskate AARP YouTube web series save money

Catch the latest episode of The Cheap Life starring Jeff Yeager, AARP's Ultimate Cheapskate. Watch

Discounts & Benefits

From companies that meet the high standards of service and quality set by AARP.

Member Benefits HomeServe

Members can protect their homes with comprehensive repair plans from HomeServe.

AARP Credit card from Chase

Members can get cash back rewards on purchases with the AARP® Credit Card from Chase.

Woman holding smartphone in city, Google map tool

Members can find discounts on the go via the AARP® Member Advantages Offer Finder app.

Member Benefits

Join or renew today! AARP members receive exclusive member benefits & affect social change.

Rewards for Good

Your Points Balance:

Learn More

Earn points for completing free online activities designed to enrich your life.

Find more ways to earn points

Redeem your points to save on merchandise, travel, and more.

Find more ways to redeem points


Advance your skills. Transform your career.

Explore your learning possibilities.