Attorney General Richard Blumenthal today said the Insurance Department must postpone Wednesday’s public hearing on Anthem’s massive proposed price hike because the company has failed to submit critical evidence.

            In a motion filed with the Insurance Department, Blumenthal said the Insurance Department must obtain critical and relevant information to ensure a proper analysis, transparency and fairness to the public.

Anthem has failed to disclose basic facts, including its methodology for projecting higher medical costs; historical costs among each insurance policy type; how much of premium dollars is allocated to surplus; and dividends paid to its parent company.

            “This public hearing will be a mirage without critical data on this massive 20-percent rate hike,” Blumenthal said. “The Insurance Department must delay or deny this rate increase until it can properly review and analyze all the facts.

“Even if Anthem provides data by the end of today, a fair and adequate review is impossible before Wednesday’s hearing. Anthem has a moral, if not legal, obligation to justify this extraordinary policy price increase.”

Specifically, Blumenthal said the Insurance Department should demand:

·         Unit cost, utilization and pure premium data for each of the policy forms;

·         Trend estimates for each of the policy forms and the methodology used to generate those estimates;

·         Specific contribution from subscribers’ premiums to operating margin by policy and age tier;

·         Board-level or committee-level documentation regarding the target surplus levels or ranges;

·         Projections for the amount of dividends to the parent company for 2010 and 2011 and documentation on which the projected amount is based.