Premium Increases for some California Insurers

by AdminJ on August 26, 2010

On August 25th Anthem Blue Cross was approved for a proposal they submitted for a Rate Increase for the state of California. The average of the rate increase is to be 14% to individual policy holders. Blue Cross is the state of California’s largest insurer. Effective October 1, 2010, some increases will be as much as 20% for some policy holders.

Last April, Anthem Blue Cross had a request for premium increase to take effective May 1, 2010 which they withdrew. The increase would have been as high as 39% for some policy holders. Anthem withdrew their proposal after there was an investigation report by external actuaries regarding the high increase. The investigation was found to have discovered significant errors with their proposal.

Another Insurer has been approved for a Rate Increase proposal they submitted as well. Blue Shield’s request has was also approved by regulators. The proposal shows a raise in premiums for some Blue Shield members of an average of 18.2%.

There are requirements and rules that the Insurance Carriers have to follow when raising trying insurance premiums. Steve Poizner, CA Insurance Commissioner can and ordered an independent reviews which he did for Blue Shield and Anthem Blue Cross as well as other state insurers. The review makes sure the Insurance carrier is in compliance with state law that does require to spend at least 70% of premiums on Medical Care.

Both Anthem Blue Cross and Blue Shield were in compliance with the state’s medical loss ratio requirements, which is why the rate increases will be coming soon.

Insurance companies will be notifying their members of the rate increases in the next week.

If you are with Anthem Blue Cross or Blue Shield and would like a Free review of your policy and to see other options for you or your family, please give me a call. I will place you with another carrier or plan that works for you and price range.

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