WellPoint Says Reform Will Cost Customers

A whopping 70 percent of small businesses insured by WellPoint Inc. may pay higher prices under Democrats' health reform.

That's one of the key findings in a study by the insurer circulating in Washington and more bad news for small companies already strapped by high health care costs.

The company study of 14 states where WellPoint operates also found insurance premiums would increase for younger individuals, the Wall Street Journal reports. In Missouri, Ohio and Wisconsin, costs would double for many individuals and quadruple for young, healthy customers, the Journal reports, citing the study. However, older, sicker individuals would see price decreases in some states.

It seems like WellPoint (despite its obvious bias in the reform debate) has some interesting statistics to share. Unfortunately for the nation's largest Blues plan provider, insurance studies aren't getting a lot of respect in Washington these days. The Journal's lead quote in the story sums up how Democrats feel about the insurance lobby.

Here's what Scott Mulhauser, a senior adviser on the Senate Finance Committee, has to say:

"How many fatally flawed insurance company reports do insurance companies need before their credibility is entirely shot? This is akin to the tobacco companies commissioning another study claiming nicotine isn't addictive and cigarettes don't cause cancer."

Wow. I haven't heard the health care industry compared to tobacco since Al Gore referred to "big oil, big tobacco and big pharma" in the 2000 presidential campaign.

A recent study by the lobbying group America's Health Insurance Plans on the effects of reform on premiums was criticized by Dems after study author PricewaterhouseCoopers distanced itself from conclusions, saying it was told to ignore parts of the legislation that would offset higher costs for the insured.

For it's part, Indianapolis-based WellPoint says it went public with its data after getting requests from members of Congress in states where WellPoint does business.

"We're in the best position to provide this information because of our footprint in these 14 states and our depth in the individual and small group markets," Brad Fluegel, WellPoint's chief of strategy tells the Journal. "We've tried to be balanced and show the good and bad of it."

Now, the question is, will anyone listen?