The maximum cumulative premium increases of 59 percent that Blue Shield of California announced in January turn out to be much higher — as high as 86.5 percent, according to a report by the Los Angeles Times.
Following rate hikes in October and January, a planned third increase on May 1 would bring the cumulative total of all three hikes to 50 percent or more for 45,500 customers, and 900 of them will be hit with a cumulative hike of 80 percent or more.
Blue Shield blamed the increases on rising costs of medical care, greater use of expensive healthcare services, and the effect of new state and federal mandates. The company added that it had underpriced some of its individual health plans.
The new rate hike had been scheduled to go into effect this month, but in response to a request from the state insurance regulator, the company placed a 60-day delay on the rate hike so that it could be reviewed.
Read the Los Angeles Times report on Blue Shield of California.
Read more coverage of the Blue Shield of California premium hikes:
- Blue Shield of California Postpones Massive Rate Hikes
- Blue Shield of California Imposes Rate Hikes of as Much as 59%
Following rate hikes in October and January, a planned third increase on May 1 would bring the cumulative total of all three hikes to 50 percent or more for 45,500 customers, and 900 of them will be hit with a cumulative hike of 80 percent or more.
Blue Shield blamed the increases on rising costs of medical care, greater use of expensive healthcare services, and the effect of new state and federal mandates. The company added that it had underpriced some of its individual health plans.
The new rate hike had been scheduled to go into effect this month, but in response to a request from the state insurance regulator, the company placed a 60-day delay on the rate hike so that it could be reviewed.
Read the Los Angeles Times report on Blue Shield of California.
Read more coverage of the Blue Shield of California premium hikes:
- Blue Shield of California Postpones Massive Rate Hikes
- Blue Shield of California Imposes Rate Hikes of as Much as 59%