State Insurance Commissioner Dave Jones calls for Anthem Blue Cross Life and Health Insurance Co., to reduce it's planned rate increase on small group major medical policyholders during a news conference in Sacramento, Calif., Tuesday, Jan. 8, 2013. Jones called it "unreasonable, " for the health insurer to raise rates on small group major medical policy holders by as much as 10.6 percent. Anthem Blue Cross spokesman Darrel Ng said the health plan disagreed with Jones figures. Ng said the rate increase with benefit changes will be around 7.5 percent, which is comparable to their competitors. (AP Photo/Rich Pedroncelli)
-
State Insurance Commissioner Dave Jones calls for Anthem Blue Cross Life and Health Insurance Co., to reduce it's planned rate increase on small group major medical policyholders during a news conference in Sacramento, Calif., Tuesday, Jan. 8, 2013. Jones called it "unreasonable, " for the health insurer to raise rates on small group major medical policy holders by as much as 10.6 percent. Anthem Blue Cross spokesman Darrel Ng said the health plan disagreed with Jones figures. Ng said the rate increase with benefit changes will be around 7.5 percent, which is comparable to their competitors. (AP Photo/Rich Pedroncelli)
-
Baltimore Ravens quarterback Joe Flacco (5) embraces linebacker Ray Lewis after defeating the San Francisco 49ers 34-31 in the NFL Super Bowl XLVII football game, Sunday, Feb. 3, 2013, in New Orleans. (AP Photo/Matt Slocum)
-
Baltimore Ravens quarterback Joe Flacco (5) is lifted into the air by teammates after defeating the San Francisco 49ers 34-31 in the NFL Super Bowl XLVII football game, Sunday, Feb. 3, 2013, in New Orleans. (AP Photo/Bill Haber)
-
Baltimore Ravens quarterback Joe Flacco celebrates their touchdown against the San Francisco 49ers during the first half of the NFL Super Bowl XLVII football game, Sunday, Feb. 3, 2013, in New Orleans. (AP Photo/Patrick Semansky)
-
Baltimore Ravens quarterback Joe Flacco break away from San Francisco 49ers' Ahmad Brooks, left, and Aldon Smith (99) during the first half of the NFL Super Bowl XLVII football game, Sunday, Feb. 3, 2013, in New Orleans. (AP Photo/Patrick Semansky)
-
Baltimore Ravens head coach John Harbaugh reacts with quarterback Joe Flacco (5) during the first half of the NFL Super Bowl XLVII football game against the San Francisco 49ers, Sunday, Feb. 3, 2013, in New Orleans. (AP Photo/Evan Vucci)
-
Baltimore Ravens quarterback Joe Flacco (5) holds the Vince Lombardi Trophy after defeating the San Francisco 49ers 34-31 in the NFL Super Bowl XLVII football game, Sunday, Feb. 3, 2013, in New Orleans. (AP Photo/Matt Slocum)
Anthem reduces rate hikes on 630,000 policyholders
SACRAMENTO, Calif. (
AP) — California's insurance watchdog said Thursday that
Anthem Blue Cross has agreed to reduce its rate increase for 630,000 policyholders.
Insurance Commissioner Dave Jones announced Anthem has voluntarily agreed to reduce its premium increase for the individual market after his department conducted a review.
Jones estimated the move will save policyholders $54 million.
The insurer had proposed an average increase of 17.9 percent, but is now reducing that to 13.8 percent. The rate increase was effective Feb. 1.
Jones lauded Anthem's move as health insurance premiums continue to soar. Even with this decrease, Jones said Anthem policyholders still experienced an average 22 percent rate increase in the previous 12 months.
"Health insurance has become unaffordable for far too many Californians," Jones said in a written statement. "The department thoroughly reviewed the rate filing and then I asked Anthem Blue Cross to lower their rates.
"I appreciate that Anthem Blue Cross has agreed to lower these rates so policyholders will pay $54 million less than they otherwise would have," Jones added.
While the state's Insurance Department reviews proposed rate increases, health insurance carriers can implement increases without approval from the insurance commissioner, who lacks the authority to reject excessive rate increases.
Darrel Ng, a spokesman for Anthem, said Thursday that the agreement reflects the fact that the health insurance industry continues to face rising costs.
Tags:
jones, anthem blue cross, anthem, culture_politics, economics, california, rate hikes, rate, health insurance, insurance, investment, rate increase, disability insurance, policyholders, health insurance carriers can implement increases without approval, rate increases, insurance commissioner, blue cross has, percent rate increase, anthem policyholders, excessive rate increases, insurance commissioner dave, health insurance industry, deductible, boiler insurance
Print Page
