On Thursday, Anthem Blue Cross, the California based health insurance firm that was bitterly criticized by the Obama Administration for hiking its premiums, had stressed that the increase of about 39% had been a direct result of the rising healthcare costs.

But the explanation sent in by WellPoint Inc., Anthem's parent firm, has been termed as "inadequate" by Kathleen Sebelius, the Secretary of Health and Human Services, more-so in the light of the huge earnings posted by the company in recent times.

"It remains difficult to understand how a company that made $2.7 billion in the last quarter of 2009 alone can justify massive increases that will leave consumers with nothing but bad options", she said.

The Secretary's comments have come on the very day when a healthcare advocacy group revealed that WellPoint, in addition to four other major insurers, have managed to collectively report a record profit for the previous year, despite having covered fewer customers.

The premium rate increases announced by Anthem are all set to take effect starting March 01.