News Headlines Article

WellPoint blames big premium hike on demographics
San Francisco Chronicle - Tom Murphy, AP Business Writer

Health insurer WellPoint blames a shift in demographics and rising medical costs for its planned 39 percent rate hike for some California customers. In a memo obtained by The Associated Press, WellPoint Inc. tells Health and Human Services Secretary Kathleen Sebelius that because of the weak economy, healthy people are dropping coverage or buying cheaper plans.