Anthem Blue Cross Agrees To Delay Rate Hike

Anthem Blue Cross and two other California insurers have agreed to hold off on rate increases at the request of Insurance Commissioner Dave Jones, the California Department of Insurance announced. Anthem Blue Cross, Aetna and PacifiCare will delay their rate hikes for 60 days beyond the anticipated effective dates for their recent filings, giving the department time to review the proposed increases. Earlier this month, Blue Shield denied Jones’ request after the company notified nearly 200,000 California policyholders of rate increases, with some reaching as high as 59 percent when combined with other recent increases. The insurer instead opted to hire an outside actuary to review its filings and to issue rebates to policyholders if warranted. Jones said he is pleased the other three insurers have agreed to comply with his request. “I am very concerned about the impact premium increases will have on policyholders, so I want to ensure that the Department has adequate time to review these rate filings for compliance with the law,” Jones said. On Jones’ first day as commissioner, he issued an emergency regulation giving him the authority to enforce the new federal 80-percent medical loss ratio in the individual market. The rule requires that at least 80 percent of the premiums be used toward health care. The commissioner will also ensure that the increases comply with the recently enacted SB 1163, which requires health plans and insurers to provide detailed information regarding premium increases and to submit a certification from an outside actuary. Jessica Vernabe