Anthem seeks rate increase

Anthem Health Plans of Maine is planning a 1.7% overall rate increase on its individual policies for the 2012 plan year, which begins July 1. The insurer filed the rate increase with the Maine Bureau of Insurance, but no longer needs the bureau's approval for increases under a certain cap.

The new rates would cover about 11,000 individual policyholders, and rates would vary based on the type of plan, according to the Portland Press Herald. The maximum increase is 18.2% for those over age 60 with a $15,000 deductible, while the largest decrease is 17.5%, though policy details for that change weren't available. The rates would give Anthem a 3% profit margin, according to its filing with the bureau.

The Bureau of Insurance cites the rising cost of health care and a change in how insurers use age to calculate rates as contributing factors in the rate increase.

A controversial state law passed last year does not require the bureau to approve individual medical insurance rate increase requests as long as the average change is less than 10% and the company agrees to put a certain amount of each premium dollar toward claim payments.

The bureau must review all changes, though, to ensure they meet state and federal law.

During its review of this filing, the Bureau of Insurance requested additional information from Anthem, recommended changes to the notice the insurance company planned to send to policyholders to make it more informative, and made sure all applicable Maine insurance laws were being followed, according to Doug Dunbar, assistant to the state commissioner of professional and financial regulation.

The rate increase is expected to be finalized and effective by July 1 pending ongoing conversations between Anthem and the state, according to Dunbar.

In the recent past, the bureau had ruled against several Anthem rate increase requests, decisions the company appealed to Maine's Supreme Judicial Court. The courts, however, sided with the insurance bureau.