Gov. Chet Culver has ordered the Iowa Insurance Division to halt an 18 percent health insurance rate increase awarded to Wellmark Blue Cross-Blue Shield of Iowa.
Culver asked Insurance Commissioner Susan Voss to hire a third-party certified actuary, independent of any financial relationship with Wellmark Blue Cross-Blue Shield, to conduct a secondary review of Wellmark’s recently-approved request for health insurance premium rate increases that are now scheduled to take effect on April 1. He also requested Voss’s office perform a similar review of any other premium hikes and an annual review of health care costs.
“I share the concerns of many Iowans that the recent health insurance premium rate increases are a disturbing and unwelcomed surprise,” Culver said in a statement. “I am directing Insurance Commissioner Voss to take several actions that are intended to provide additional protections for the interests of Iowa health insurance consumers.”
Wellmark’s Iowa rate increase has been the subject of intense scrutiny. Last year, Wellmark raised insurance rates for individual policyholders by an average of 9.3 percent. The new rate increase would impact an estimated 80,000 Iowans.
Last month, U.S. Sen. Chuck Grassley, R-Iowa, sent a letter to the company’s CEO seeking justification for the rate increases. Wellmark Vice President Laura Jackson told a panel of state lawmakers last week that the rate hikes could be blamed on Iowans’ age and increasingly unhealthy lifestyles.