1/5/11, "Blue Shield of California seeks rate hikes of as much as 59% for individuals," LA Times, D. Helfand
"Another big California health insurer has stunned individual policyholders with huge rate increases — this time it's Blue Shield of California seeking cumulative hikes of as much as 59% for tens of thousands of customers March 1.
- Blue Shield's action comes less than a year after Anthem Blue Cross tried and failed to raise rates as much as 39% for about 700,000 California customers.
- and other expenses resulting from new healthcare laws.
In all, Blue Shield said, 193,000 policyholders would see increases averaging 30% to 35%, the result of
- three separate rate hikes since October.
While most policyholders received separate notices for the successive rate hikes, others were given the news all at once because they had contracts guaranteeing their rate for a year, Blue Shield spokesman Tom Epstein said.
- Michael Fraser, a Blue Shield policyholder from San Diego, learned recently that his monthly bill would climb 59%, to $431 from $271.
Like many people who hold individual policies, Fraser is self-employed.
- Others who carry such insurance include people who aren't covered by employer plans
- or who have been laid off....
- (Democrat California Insrance Commissioner Dave) Jones said the Blue Shield move underscored the need for the Legislature to give the insurance commissioner legal authority to
- regulate insurance rates the same way he does automobile coverage.
Epstein said Blue Shield raised rates again Jan. 1 to pay for changes under the national healthcare overhaul and a new state law that bars insurers from charging women more than men. (Some policyholders will pay less under the state gender law, while others will pay more.)...
- Some policyholders have seen their bills rise gradually over the last five months, while others will see the charges lumped together March 1....
- Despite the large increases, Epstein said Blue Shield would again lose "tens of millions of dollars" on its individual business in 2011.
- Those customers have seen two rate increases since October that together average 37%, Epstein said.
Anthem said Wednesday that it too expected to raise rates — an average of 9.8% for individual policyholders, effective April 1. That would come on top of increases in October averaging 14% that had been delayed for six months amid heightened scrutiny by state regulators.
- Anthem is taking a cautious approach to its rate hikes given the controversy generated by last year's plan for 39% hikes."...
via Lucianne.com
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