On Wednesday, state and central officials went forward to investigate insurance giant firm, WellPoint Inc., as lately, it hiked its rates. The officials are of the view that the company may be involved in inaccurately increasing the rates and that is why, has been ordered to justify its actions and decisions.

The officials are dubious about the whole scenario, and are throwing up a challenge at WellPoint's declaration, which states that defects in health insurance rate filings by its California subordinate, Anthem Blue Cross, were unintentional.

WellPoint immediately took back the rate hikes of as much as 39% for many of Anthem's 800,000 individual policyholders in California, following a state insurance advisor found that, it exaggerated future medical expenses, which was a strategy to provide a justification on their behalf to their customers.

In reply to the most recent criticism, the insurer asserted that its rates throughout the nation are stable, justified and conform to all rules. A corporation spokesperson stated that the faults that led to the California rate increase cancellation were exceptional.

WellPoint spokesperson, Kristin Binns stated that its rates throughout the nation are inside a particular boundary, that says what is rational and actuarially sound in every market.