Saying the individual health insurance market is "broken," Blue Shield of California has abandoned a proposal to raise individual premiums by as much as 86.5 percent, according to Blue Shield release.
California regulators had asked Blue Shield to postpone the rate increase for 60 days so that an actuarial review could be performed. Although the review determined the rate proposal was not excessive, the company decided to drop the plan.
"We have long acknowledged that the individual health insurance market is broken and we are pleased that the rules will change in 2014," said Blue Shield chairman and CEO Bruce Bodaken, referring to a change mandated by the healthcare reform law.
Warning for hospitals and patients
But Mr. Bodaken sent a warning to hospitals, other providers and patients. "Health reform will succeed only if we restrain the rising cost and utilization of medical services that is driving premium increases," he said. "We are dedicated to working collaboratively with providers and regulators to address that issue."
The release added that Blue Shield has been a proponent accountable care organizations. More than one year ago, the company launched an ACO with Catholic Healthcare West and Hill Physicians for CalPERS members in the Sacramento area, and it recently launched two similar projects in San Francisco.
Read the Blue Shield of California release on health insurance premiums.
Read more coverage of Blue Shield of California's proposed rate hike.
-California Blue Shield's Rate Hike Turns Out to be Much Higher Than Expected
-Blue Shield of California Postpones Massive Rate Hikes
-Blue Shield of California Imposes Rate Hikes of as Much as 59%
California regulators had asked Blue Shield to postpone the rate increase for 60 days so that an actuarial review could be performed. Although the review determined the rate proposal was not excessive, the company decided to drop the plan.
"We have long acknowledged that the individual health insurance market is broken and we are pleased that the rules will change in 2014," said Blue Shield chairman and CEO Bruce Bodaken, referring to a change mandated by the healthcare reform law.
Warning for hospitals and patients
But Mr. Bodaken sent a warning to hospitals, other providers and patients. "Health reform will succeed only if we restrain the rising cost and utilization of medical services that is driving premium increases," he said. "We are dedicated to working collaboratively with providers and regulators to address that issue."
The release added that Blue Shield has been a proponent accountable care organizations. More than one year ago, the company launched an ACO with Catholic Healthcare West and Hill Physicians for CalPERS members in the Sacramento area, and it recently launched two similar projects in San Francisco.
Read the Blue Shield of California release on health insurance premiums.
Read more coverage of Blue Shield of California's proposed rate hike.
-California Blue Shield's Rate Hike Turns Out to be Much Higher Than Expected
-Blue Shield of California Postpones Massive Rate Hikes
-Blue Shield of California Imposes Rate Hikes of as Much as 59%