Responding to a request from the state insurance regulator, Blue Shield of California has placed a 60-day delay on massive rate hikes that were scheduled to go into effect on March 1, according to a release from the insurer.
Earlier this month, Blue Shield of California announced cumulative rate hikes of 30-35 percent, including a rise of as much as 59 percent for individuals. Insurance Commissioner Dave Jones asked the company to delay implementation so he could study the matter, but he does not have the power to deny the increase.
Blue Shield suggested it would ultimately impose the rate increase. "We are taking this action to remove any doubt that the rates we have submitted are necessary to pay the medical expenses of our individual members and meet the new medical loss ratio standard," the insurer said in a statement. "Even with these increases, we don't expect the premiums to cover the cost of medical care for these members."
The Blue Shield statement added that the federal healthcare reform law is "a step in the right direction" toward controlling healthcare costs.
Read the Blue Shield of California release on insurance premiums.
Read more coverage of health insurance rate increases.
- Blue Shield of California Imposes Rate Hikes of as Much as 59%
- HHS Issues Proposed Rule on Insurance Premium Hikes
- State Insurance Authorities Don't Rigorously Review Rate Hikes
Earlier this month, Blue Shield of California announced cumulative rate hikes of 30-35 percent, including a rise of as much as 59 percent for individuals. Insurance Commissioner Dave Jones asked the company to delay implementation so he could study the matter, but he does not have the power to deny the increase.
Blue Shield suggested it would ultimately impose the rate increase. "We are taking this action to remove any doubt that the rates we have submitted are necessary to pay the medical expenses of our individual members and meet the new medical loss ratio standard," the insurer said in a statement. "Even with these increases, we don't expect the premiums to cover the cost of medical care for these members."
The Blue Shield statement added that the federal healthcare reform law is "a step in the right direction" toward controlling healthcare costs.
Read the Blue Shield of California release on insurance premiums.
Read more coverage of health insurance rate increases.
- Blue Shield of California Imposes Rate Hikes of as Much as 59%
- HHS Issues Proposed Rule on Insurance Premium Hikes
- State Insurance Authorities Don't Rigorously Review Rate Hikes