U.S. Health Secretary Kathleen Sebelius said the decision of Blue Shield of California to limit its profits is “a great step forward in lowering costs” for health reform.

A large California health insurer has caved in to political pressure about its profits, pledging to limit them to 2% of net income. The announcement of Blue Shield of California, one of the state’s largest health insurers, seems likely to spawn followers.

Blue Shield of California pledged today (June 7) to limit its annual net income to no more than 2% of revenue, a move the company said was “bold.”

California Insurance Commissioner Dave Jones, saying he was “pleased” that Blue Shield of California withdrew its recent rate increase, used the opportunity to again appeal for regulatory authority over health insurance rates in the state.

Blue Shield of California agreed to delay for 60 days its health insurance premium rate increases of up to 59%, originally scheduled to go into effect March 1.

California’s regulator of managed health plans fined the seven largest health plans in the state $4.85 million for violating laws regarding paying claims to health care providers.q

Blue Shield of California says it is “disappointed” that the California Medical Association has sued to get the insurer to stop using its new online doctor ratings system.

The California Medical Association has sued Blue Shield of California over the health insurer’s new online doctor ratings system, which the alliance of physicians says is inaccurate and misleading.

President Barack Obama, marking the 90th day since passage of federal health reform legislation, met with chief executives from more than a dozen insurance companies, warning them against raising rates in response to new requirements placed on them.

California’s seven largest health insurers were issued subpoenas to investigate possible illegal activity regarding premium rate increases and delays in claims payments.