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California commissioner asks insurers to delay rate hikes
NEWS IN BRIEF — Posted Jan. 24, 2011
On the heels of multiple rate increases imposed on Blue Shield of California, California Insurance Commissioner Dave Jones has asked other insurers to hold off on any further rate increases.
Blue Shield customers face cumulative rate hikes as high as 59% from the insurer during the last five months, but Jones does not have the authority to reject or approve the increases. However, state and federal laws allow the Dept. of Insurance to examine whether insurers are spending a minimum amount of premiums on medical care.
After asking Blue Shield to put off its latest increase by 60 days, Jones asked Aetna, UnitedHealth Group and WellPoint subsidiaries in California to delay their most recent planned increases by at least 60 days.
The three health plans that received the letter did not immediately respond.
Note: This item originally appeared at http://www.ama-assn.org/amednews/2011/01/24/bibf0124.htm.
