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WellPoint Anthem Retreats From Its 39% Premium Hike Demand After Audit Reveals Bad Math
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WellPoint Inc., the parent company of Anthem Blue Cross, yesterday backed down from its 39% hike of health plan premiums for 800,000 Californians after state officials unveiled an audit showing “numerous and substantial errors” in a filing Anthem said justified the increase. The audit, conducted by Axene Health Partners LLC, showed that Anthem double counted “aging” as a projection of total lifetime loss ratio, and “overstated the initial medical trend used to project claims for September 2009 for known risk factors,” said state Insurance Commissioner Steve Poizner.