Health Insurers Agree to 60-Day Rate Hike Delay

Several California health insurance companies announced that they will agree to delay planned rate hikes for 60 days. The delays come after state Insurance Commissioner Dave Jones asked the companies for time to review the increases.

People with Individual Policies Avoid Hikes for Now

Aetna, Anthem Blue Cross and PacifiCare have all agreed to delay their hike increases for people with individual policies while the commissioner takes time for review them.

Anthem had planned to increase rates on April 1 by an average of 9.8 percent for 683,000 individual policyholders in California. Aetna Inc., also planning to increase rates on April 1, said policyholders would have seen an average increase of 20.7 percent.

PacifiCare, a division of UnitedHealth Group of Minnetonka, Minn., planned to raise premiums by 2 to 9 percent as of Jan. 1.

However, all have decided to wait for the commissioner to review the increases, even though he has limited power to stop them. His only real power is blocking rate hikes when companies spend less than 70 percent of premiums on healthcare expenses.

All Policyholders Are Not So Lucky

In contrast to what the three companies have agreed, at least one, Blue Shield of California, announced its decision to increase rates by 59 percent earlier in January, whether the commissioner disapproved or not.

In response to this announcement, Jones said that Blue Shield policyholders will not have the benefit of this additional review period to ensure compliance with the law, but I will do what is within my power to determine whether Blue Shields proposed rates are in compliance with the law and to enforce that law.

Policyholders carrying coverage with Blue Shield will ultimately see three rate increases from the company. Of the 194,000 individual policyholders insured with Blue Shield, numerous have already received notification that they would see all three increases at once.

If you fear rate increases that Blue Shield customers have seen, it could be a good idea to shop around for new health insurance coverage. While many companies have made a point to increase their rates, with a little searching, you may find low-cost health insurance options that you need.

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