Insurance income

This is in response to the article “Dirigo Rate Hike Angers Some” (BDN, Dec. 6). Anthem Blue Cross and Blue Shield is one of many products offered by WellPoint, Inc., the largest health insurer in the United States.

Despite 2005 figures showing that WellPoint had $45.136 billion in revenue, with an operating income of $4.116 billion and a net income of $2.463 billion, they do not appear to be interested in maintaining a product (Dirigo Choice and Maine’s Anthem BC and BS health insurance) that produces a smaller income stream.

Even within Maine’s Anthem BC and BS insurance offerings, there are some lines that are more profitable than others. This reflects what most of us know due to plain old common sense. In order to satisfy the demands of a wide customer base, we often need to offer an unprofitable line in order to sell the other very profitable lines.

Our Maine policy makers should be demanding that the public know the overall net income of both insurance lines within the state of Maine. Then we can judge whether a rate increase is really necessary to keep WellPoint afloat, while many of Maine’s insured are barely treading the premium waters.

Lora B. Whelan

Eastport