Blue Shield of California is imposing cumulative rate hikes of 30-35 percent, including a hike of as much as 59 percent for individuals, according to a report by the Los Angeles Times.
The announcement comes almost a year after Anthem Blue Cross announced a rate hike of as much as 39 percent in California, stoking national outrage and aiding passage of the healthcare reform law. The insurer ultimately backed down and enacted a maximum rate hike of 20 percent instead.
The Blue Shield hikes come in three phases, in Oct. 1, 2010, Jan. 1 and March 1, 2011, but many policyholders will feel the cumulative impact of all three hikes.
Blue Shield said the increases were caused by higher payments for hospitals, physicians and prescription drugs, as well as new requirements under the healthcare reform law and a new state law that bars insurers from charging women more than men.
Insurance Commissioner Dave Jones said Blue Shield's announcement underscored the need for the legislature to grant him authority to regulate insurance rates.
Under proposed regulations released by HHS in December, state and federal regulators would be required to review health insurance premium hikes greater than 10 percent, and insurers under scrutiny would have to post justifications for increases on their websites and on the HHS website.
Read the Los Angeles Times report on Blue Shield of California's rate hikes.
Read more on health insurers' rate hikes.
- HHS Issues Proposed Rule on Insurance Premium Hikes
- State Insurance Authorities Don't Rigorously Review Rate Hikes
- HHS Secretary Seems to be Bullying Insurers, Congressmen Say
The announcement comes almost a year after Anthem Blue Cross announced a rate hike of as much as 39 percent in California, stoking national outrage and aiding passage of the healthcare reform law. The insurer ultimately backed down and enacted a maximum rate hike of 20 percent instead.
The Blue Shield hikes come in three phases, in Oct. 1, 2010, Jan. 1 and March 1, 2011, but many policyholders will feel the cumulative impact of all three hikes.
Blue Shield said the increases were caused by higher payments for hospitals, physicians and prescription drugs, as well as new requirements under the healthcare reform law and a new state law that bars insurers from charging women more than men.
Insurance Commissioner Dave Jones said Blue Shield's announcement underscored the need for the legislature to grant him authority to regulate insurance rates.
Under proposed regulations released by HHS in December, state and federal regulators would be required to review health insurance premium hikes greater than 10 percent, and insurers under scrutiny would have to post justifications for increases on their websites and on the HHS website.
Read the Los Angeles Times report on Blue Shield of California's rate hikes.
Read more on health insurers' rate hikes.
- HHS Issues Proposed Rule on Insurance Premium Hikes
- State Insurance Authorities Don't Rigorously Review Rate Hikes
- HHS Secretary Seems to be Bullying Insurers, Congressmen Say