Calif. commissioner asks largest insurers to delay health premium increases
Newly instated California Insurance Commissioner Dave Jones sent letters to Anthem Blue Cross, PacifiCare and Aetna asking them to delay increasing premiums for at least 60 days while he reviews the filings.
Jones also has been working to prevent BlueShield of California from implementing a rate increase of up to 59%. An Increase on individual health insurance premiums for tens of thousands of state residents is facing a similar challenge to the proposed 39% increase sought by Anthem in the state last year.
“The state’s largest health insurers have submitted multiple premium increases for early 2011, and I am very concerned about the impact these increases will have on policyholders, especially since I have not had sufficient time to review these filings,” Jones said in a statement. “These premium increases come at a time when Californians and their families are struggling to recover from the worst recession since the Great Depression.”
Although Jones does not have the authority to reject premium increases, he can review increase proposals and ensure they are in compliance with the law, according to insurance commissioner’s office; he can block the increases only if insurance companies spend less than 70% of their premiums on healthcare expenses.
“The request I have made for additional time from these insurers is one that I believe to be both fair and reasonable, given that I was sworn in only last week,” Jones said. “I hope they will comply.”


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