business

Aetna raises rates in California despite opposition from state

Posted April 23, 2012

Print  |   Email  |   Respond  |   Reprints  |   Like Facebook  |   Share Twitter  |   Tweet Linkedin

Effective April 1, Aetna raised premiums for 16,000 of its small-business customers in California by an average of 1.8%, an increase the state Dept. of Insurance had declared unreasonable. Combined with other increases during the last three quarters, the most recent hike means premiums have gone up an average of 8% during the last year and more than 30% cumulatively over the last two years for those small-business customers.

The state’s actuaries asserted that Aetna was overestimating its medical expenses for the next year and deemed the increase unreasonable. That pronouncement, however, is the limit of the department’s authority, because the California insurance commissioner cannot block rate increases.

Aetna spokeswoman Cynthia Michener said “rate increases are never easy” and defended Aetna’s cost projections. She said the plan’s projected medical-loss ratio for the customers in question is 86.7%, well above the 80% minimum set under the Patient Protection and Affordable Care Act.

Note: This item originally appeared at http://www.ama-assn.org/amednews/2012/04/23/bibf0423.htm.

Back to top


ADVERTISEMENT

ADVERTISE HERE


Featured
Read story

Confronting bias against obese patients

Medical educators are starting to raise awareness about how weight-related stigma can impair patient-physician communication and the treatment of obesity. Read story


Read story

Goodbye

American Medical News is ceasing publication after 55 years of serving physicians by keeping them informed of their rapidly changing profession. Read story


Read story

Policing medical practice employees after work

Doctors can try to regulate staff actions outside the office, but they must watch what they try to stamp out and how they do it. Read story


Read story

Diabetes prevention: Set on a course for lifestyle change

The YMCA's evidence-based program is helping prediabetic patients eat right, get active and lose weight. Read story


Read story

Medicaid's muddled preventive care picture

The health system reform law promises no-cost coverage of a lengthy list of screenings and other prevention services, but some beneficiaries still might miss out. Read story


Read story

How to get tax breaks for your medical practice

Federal, state and local governments offer doctors incentives because practices are recognized as economic engines. But physicians must know how and where to find them. Read story


Read story

Advance pay ACOs: A down payment on Medicare's future

Accountable care organizations that pay doctors up-front bring practice improvements, but it's unclear yet if program actuaries will see a return on investment. Read story


Read story

Physician liability: Your team, your legal risk

When health care team members drop the ball, it's often doctors who end up in court. How can physicians improve such care and avoid risks? Read story

  • Stay informed
  • Twitter
  • Facebook
  • RSS
  • LinkedIn