Bitter Criticism Thrown WellPoint's Way in Congress
Bitter Criticism Thrown WellPoint's Way in Congress

On Wednesday, congressional Democrats, looking for momentum on the eve of an important and crucial meeting on health care revamp, pounced upon evidence that California's largest for-profit provider of health insurance ended up spending over a million dollars on luxurious and lavish corporate retreats and executive salaries, even as it planned high increases in rates for about 800,000 customers who purchase coverage on their own.

Chiefs at WellPoint, the parent company of California's Anthem Blue Cross, came under heavy fire at a House hearing after internally exchanged e-mails and other documents revealed that the company tends to systematically work to curb how much it spends on medical claims, while prompting sicker patients to turn to stingier plans with bigger cost-sharing.

The entire controversy and probe was started by Anthem's plan to hike the rates for about 800,000 customers across California by as much as 39%.

"Corporate executives at WellPoint are thriving, but its policyholders are paying the price", said House Energy and Commerce Committee Chairman Henry Waxman, D-Los Angeles.

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