Health and Human Services Secretary Kathleen Sebelius is urging state insurance regulators to carefully review WellPoint’s proposed rate increases in response to errors and faulty assumptions that prompted the company to withdraw a planned increase of upwards of 39 percent in California. Additionally, she encourages them to push for the authority to review and approve rate hikes beforehand.

Pennsylvania Insurance Commissioner Joel Ario says insurers are complaining about very aggressive pricing among competitors in advance of the health reforms slated for implementation in 2014. “We are seeking additional rate review authority in Pennsylvania, and are using the authority we do have to scrutinize all requests for rate increases,” he said.

Ario said he has received complaints from some insurers that their competitors are “being even more aggressive than usual” in their pricing to gain advantage by increasing prices on the worst risks and cutting prices on the best risks before most healthcare reforms take effect in 2014.

May 12, 2010