WellPoint (WLP), the largest health insurer in the U.S. by membership, is being accused by Connecticut Attorney General Richard Blementhal of rigging competition through special contracts to receive discounts from hospitals for its Anthem Blue Cross and Blue Shield units. Blementhel sent a letter to U.S. Secretary of Health and Human Services Kathleen Sebelius on the matter, Freifield reports. Blumenthal said that even though it has these favorable reimbursement deals, less than a year ago, Anthem received approval for premium increases of between 13 and 20 percent on individual Connecticut health insurance policies. "As a result of Anthem's practices, competitors are forced to pay more, hospitals are forced to accept less from Anthem and consumers are the ones paying," Blumenthal said in the statement. [Read the full article]

In advance of a series of meetings with investors, executives with health insurer Humana Inc. Monday reaffirmed their prediction that the company will earn between $5.15 and $5.35 per diluted share in 2010. Louisville-based Humana (NYSE: HUM) last month said its net income for full year 2009 increased 61 percent, to 41 billion, or $6.15 per share, from $647.2 million, or $3.83 per share, in 2008. The company also announced last month that it will cut 2,500 jobs nationwide this year while adding about 1,100 jobs in areas where officials expect the business to grow. 2010 American City Business Journals, Inc. and its licensors. All rights reserved. The material on this site may not be reproduced, distributed, transmitted, cached or otherwise used, except with the prior written permission of bizjournals. In advance of a series of meetings with investors, executives with health insurer Humana Inc. [Read the full article]

Paul Krugman posted this chart today. It's the current Intrade betting on the passage of healthcare. Betting markets don't have any mystical power, but they do summarize conventional wisdom pretty well; and judging from Intrade, health reform has gone from a long shot to more likely than not. If it does happen, and Republicans campaign on repeal, Democrats should say bring em on. Those negative poll numbers partly reflect misinterpretation a significant number of people disapprove of reform because they think it doesn't go far enough and partly reflect misinformation the more people know about reform, the more they like it. I haven't heard many others venturing the opinion that Intrade represents a good proxy for the sentiments of American voters but I'll not belabor that point. After all, he does have the PhD. [Read the full article]