SAN FRANCISCO (AP) — Blue Shield of California is planning to go forward with planned health insurance rate increases despite calls from government regulators to delay the move.
The San Francisco-based insurer said Friday that it asked an independent actuary to review the increases and would issue refunds if problems were found with the rates.
The insurer has implemented two rate hikes since Oct. 1. Some policyholders would pay 59 percent more in premiums cumulatively over the three increases.
California Insurance Commissioner Dave Jones had asked Blue Shield to delay planned March 1 increases so his department could do a full review.
Blue Shield CEO Bruce Bodaken says the increases are necessary because of rising health care costs.
""Consumer advocates fear that the health care law could worsen some of the very problems it was meant to solve — by reducing competition, driving up costs and creating incentives for doctors and hospitals to stint on care, in order to retain their cost-saving bonuses.The above quote is from the November 21, issue of the New York Times.“The new law is already encouraging a wave of mergers, joint ventures and alliances in the health care industry,” said Prof. Thomas L. Greaney, an expert on health and antitrust law at St. Louis University. “The risk that dominant providers and dominant insurers may exercise their market power, individually or jointly, has never been greater.”""
Comments