BlUE SHIELD REJECTS COMMISSIONER JONES REQUEST TO DELAY RATES

Read this article - Blue Shield's behavior is unbelievable!

Blue Shield of California defies state insurance commissioner over rate hikes

The Los Angeles Times

Defying California’s new insurance commissioner, Blue Shield of California has refused to delay controversial health insurance rate hikes for 60 days that prompted an uproar among customers who are seeing successive increases over the last five months of up to 59%.

The nonprofit San Francisco-based insurer said it would submit its latest increase — effective March 1 and averaging 15% — for review by an outside expert. It pledged to issue refunds to customers if errors are found in its paperwork.

Insurance Commissioner Dave Jones immediately condemned Blue Shield’s move, saying the company acted on its own without consulting him. Jones discounted Blue Shield’s characterization of its action as “unprecedented,” noting that a new state law requires all insurance rate hikes to undergo scrutiny by outside actuaries.

Jones, however, has limited authority to stop rate increases. He can only do so in cases where an insurer spends less than 70% of premium income on healthcare expenses. (more)

This entry was posted on Saturday, January 15th, 2011 at 3:53 am and is filed under health News,insurance companies. You can follow any responses to this entry throu

"Child Only Health Insurance Policy "big disappointment in CA

After Blue Shield rate increase disaster, now the "child only health insurance policies" are another disaster for California residents.

In the last quarter of 2010 with the exception of Blue Shield no insurance carrier offered anymore child only policies for children under 19 years, due to the fact that accordingly to the healthcare reform they had to accept all children, even the unfortunate one's with severe health problems. Than the insurance commissioner threatened, if the carriers would not offer child only policies, the carriers would be banned for 5 years in the CA market.

Now most carriers have an open enrollment window for "child-only policies" for children under 19 years, which most carriers offer from January 1st to February 28th of 2011.

After investigating the individual insurance plans, I can only find PPOs plan with very high deducible Anthem, Aetna offers a $3500 deductible Plan. Blue Shield , Cigna offers a $ 5000 deductible -Healthnet and Anthem are offering also a HMO but rates are higher than any available PPO plans.

Before the Healthcare reform we were able to offer insurance PPO plan with $ 500 and $ 1000 deductible - these plans were very affordable for children. They are not existing anymore and this creates a hardship for all families in CA.

I do understand the insurance carrier having to protect themselves from the financial loss of huge claims for children with health problems, but it is not fair that all CA children cannot find suitable policies.

I will not offer a child policy with a deductible of $ 3500 or $ 5000, it is to easy for children to get sick and have to go to the emergency. Just to open the door of an emergency room cost $ 500, Parents should not take this risk!

Please offer more insurance plans for children under the age of 19 years.

The CA State should support the insurance companies with the unhealthy children in CA, and not just demand that the insurance companies carry the burden of the unhealthy children.

Our children are our future and we must make sure that they are protected!

Last year we could offer plans of

BLUE SHIELD RATE INCREASE DELAYED BY INSURANCE COMMISSIONER JONES

CA insurance commissioner Jones is requesting Blue Shield to hold off on rate increase for the planned increases of January and March increases.

Please read this article, which has been published by the insurance commissioner Jones. http://www.insurance.ca.gov/0400-news/0100-press-releases/2011/release002-11.cfm

I hope this will happen as some of my client have increase of 59 % for the Vital Shield plans.

When the old insurance commissioner Poizner had put Anthem on hold Blue Shield was one of the only carrier to be able to offer individual insurance policies last quarter of 2011,

With almost no competition insight Blue Shield must have had a record breaking quarter!

So please help your policyholders and stop this rate increases!