April 30: Anthem fail

Anthem pulls the infamous (39% increase) Obamacare resuscitator. When the company refiles, it will be shooting for the Obamacare 80/85% MLR instead of the California standard, 70%.

An independent actuary found several errors, the most substantial of which were overpessimistic trend factors. For example, the filing didn’t properly address the fact that loss costs for a cohort rise as the cohort ages, so that Anthem’s 19.8% trend should have been 16.7%.

(The report is available via the California DOI.)

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