Wellpoint defends rate increases on Capitol Hill

INDIANAPOLIS (WISH) - WellPoint executives traveled from the Circle City to Capital Hill Wednesday to defend their decision to increase rates for California customers by as much as 39 percent. But California isn't the only state seeing rate hikes. WellPoint customers from Hollywood to Hoosier country have seen spikes in their premiums and many customers have held angry protests.

That anger culminated in the hearing. A single mother of two, whose premiums increased almost 30 percent, testified her health insurance premiums are $12,500 a year and her deductible is $9,000.

"I am held captive in the policy since my youngest son Britton was born with a heart condition," said Julie Henriksen, an Anthem policy holder.

WellPoint is Anthem's parent company.

WellPoint CEO Angela Braly testified that rising healthcare costs and the underpayment by government programs forced the company to raise premiums. But sparks flew when Representative Jan Schakowsky, a Democrat from Illinois begin questioning the CEO.

"How much money do you make?" Schakowsky asked Braly.

"My salary is $1.1 million. I receive stock compensation with a value of $8.5 million and last year an incentive payment of $73,000," said Braly.

"Of course it would make sense that you would need a big rate increase," Schakowsky retorted.

Between berating Braly and big insurance, congressional leaders debated healthcare reform. WellPoint customers testifying before the committee weighed in. Lauren Meister told congressional leaders she wants a public option. She suggested expanding Medicare.

"Medicare currently has an unfunded liability over the next 50 years of $35 trillion. That's with a 'T’," said Republican representative Phil Gingrey, MD, as he formed the letter 'T’ with his hands.

"I've seen the country support a bailout for the banks and for the car companies. I'd like to see them bail out the American people,” Meister responded.

Susan Bayh, the wife of Democratic Indiana Senator Evan Bayh, reportedly is paid more than $300,000 a year for her service on WellPoint's board of directors. 24-Hour News 8 tried to contact her for comment, but no one returned our calls.

Thursday, President Obama hosts a summit on health care reform.