California insurance company Anthem Blue Cross is set to raise premiums on individual policy holders an expected 39% according to reports. 

However, the Obama administration is taking a close look at the rate increase.  Health and Human Services Secretary Kathleen Sebelius has sent a letter to health insurer asking for justification for the rate increase.

According to the Los Angeles Times, as many as 800,000 of Anthem Blue Cross customers with individual coverage could see a rate hike starting in March.

The rate hike appears odd and has angered many policy holders because Anthem’s parent company, WellPoint Incorporated posted earning $2.7 billion in the final quarter of 2009.

Anthem’s actions underscore the need for meaningful heath care reform.  Many individuals who currently buy policies on their own will be effectively priced-out of insurance coverage if these rate hikes take effect.

Anthem and its parent company have been some of the strongest opponents of the pending health care reform legislation.