WellPoint Cancels Investors' Day and Californians are Still Facing 39% Rate Hikes

With 2.7 million Americans now uninsured in the last year alone, and WellPoint poised to hike rates by almost 40%, you think our public servants may come to our rescue and you know, introduce a single payer system for those of us who want it?  You want to keep paying these profit mongers, have at it, but I'd like my premiums to actually help pay for my, and my risk pool's, care rather than paying for corporate jets, millions in executive pay and denial of care so Wall Street is happy. 

Shares of WellPoint fell to $57.67 and I say, good.  Trading in the shares of a company that deals in the health, life and death of human beings sickens me.  How many individuals and institutions make money from denying claims to sick Americans--like HealthAmerica (part of Coventry) denying 5-year old Kyler Van Nocker his cancer treatment?  The health insurance industry is a dinosaur, set for extinction because their time on this earth has come to an end.

This is taken directly from the Wall Street Journal.

By Russ Britt 
 

A congressional hearing into WellPoint Inc.'s (WLP) proposed rate increases in California has prompted the health insurer to cancel its investor day, taking a bite not only out of its shares but those of other carriers as well.

Shares of WellPoint traded off nearly 3% to $57.67 in recent action, on the heels of the insurer's disclosure that its investor day, scheduled for Feb. 23, would be cancelled.

The news seemed to put a chill on all insurers, with virtually all of them in the red by a percentage point or more despite the broader equity market's gains.

The company said in a press release that the House Energy and Commerce subcommittee on oversight and investigations has requested information on premiums it planned to charge in California. WellPoint's Anthem Blue Cross of California plans to raise premiums on individual health plans by up to 39%.

The panel also is asking that a senior WellPoint officer appear before the subcommittee at the Feb. 24 hearing.

"The investor-day program was canceled in order to allow the company to prepare appropriately for the hearing," WellPoint's press release said. "The company is confident that its rates were established consistent with actuarial principles and state law, and welcomes the opportunity to discuss the underlying rise in health costs and actuarial dynamics."

Anthem was supposed to impose the rate increase by March 1 but, amid continuing controversy over the raise, it has decided to postpone it until May 1.

WellPoint said management would review its 2010 financial outlook during a conference call on March 17. The company said it still expects net income for the year to hit at least $6 a share.

Analysts polled by FactSet Research are forecasting the company will post earnings of $6.10 a share, while a ThomsonOne estimate calls for WellPoint to earn $6.12.

Among major insurers, UnitedHealth Group Inc. (UNH) was off 1.7%, Aetna Inc. (AET) lost 1.4%, Cigna Inc. (CI) dropped 1.3% and Humana Inc. (HUM) was down 1%.

-By Russ Britt; 415-439-6400; AskNewswires@dowjones.com