Filed Under:Health Insurance, Individual Health

California Health Insurers Reduce Rate Increases to Tune of $48 Million

California Insurance Commissioner Dave Jones (AP Images)
California Insurance Commissioner Dave Jones (AP Images)

Aetna and Wellpoint subsidiary Anthem Blue Cross as well as Blue Shield have agreed to modify their most recent small group health insurance rate increases in California for the third quarter of 2012 for a total savings of $48 million for small employers, Insurance Commissioner Dave Jones recently announced.

By far the largest premium rate increase withdrawal was Anthem Blue Cross’s of 2.5% July 1 premium increase for small-group preferred provider organization products, resulting in a total savings of approximately $25 million for 45,000 of Anthem Blue Cross's small group policyholders, covering approximately 280,000 individuals.

Insurers have a history of reducing average increases in California, or delaying them, under Jones. In 2011, Anthem Blue Cross agreed to reduce the average increase to 9.1%, from 9.8%, and to impose the increase July 1, rather than April 1.

Jones insisted early on that large carriers submit proposed individual rate increases to an extra layer of state review, and that they wait at least 60 days after a rate increase takes effect to ask for a new rate increase.

Featured Video

Most Recent Videos

Prospects not listening to voice mail? Arrange a phone date

Provided by LIFEHEALTHPRO

Redesigning your phone life is more important than finding the “best words” for a voice mail in today’s culture.

Behind the scenes with Vicki Gunvalson [VIDEO]

Provided by LIFEHEALTHPRO

In this exclusive interview, Vicki Gunvalson shares how she built a $15 million a year annuity business by planning for...

Regulator: Market may need to reinvent LTCI

Provided by LIFEHEALTHPRO

Cioppa says Maine's governor wants to spur the creation of better products.

Dementia: It's more than Alzheimer's

Provided by LIFEHEALTHPRO

An association calls for policymakers to remember lesser-known neurodegenerative conditions.

Related resources

More Resources

Comments

Power your business with up-to-the-minute insurance news, analysis, and best practices from LifeHealthPro Daily eNewsletter – FREE.

Power your business with LifeHealthPro Daily eNewsletter – FREE.

Enter a valid email address.
Close
Nichole Morford

Nichole Morford
Managing Editor

Thank you for subscribing to LifeHealthPro Daily!

Check Out More eNewsletters Now! Close

Advertisement. Closing in 15 seconds.