business
Blue Shield of California withdraws latest rate hike
NEWS IN BRIEF — Posted March 28, 2011
Following harsh criticism from state and national officials unhappy with its string of rate increases, Blue Shield of California announced March 16 that it had withdrawn a pending rate increase on its individual members averaging 6.5%.
The company's 340,000 individual members had been subject to two other rate increases over the last year. The latest proposed hike, if not abandoned by the insurer, would have meant a cumulative 87% increase in premiums for some members.
California Insurance Commissioner Dave Jones had cited the pending rate increase -- along with other recent hikes -- as the reason his office should have the authority to review, then approve or reject rate increases. State law gives the commissioner only the authority to monitor whether insurers meet a minimum medical-loss ratio.
Note: This item originally appeared at http://www.ama-assn.org/amednews/2011/03/28/bibf0328.htm.
