LOS ANGELES TIMES – Another big California health insurer has stunned individual
policyholders with huge rate increases — this time it’s Blue Shield of
California seeking cumulative hikes of as much as 59% for tens of
thousands of customers March 1.
Blue Shield’s action comes less than a year after Anthem Blue Cross tried and failed to raise rates as much as 39% for about 700,000 California customers.
San Francisco-based Blue Shield said the increases were the result of fast-rising healthcare costs and other expenses resulting from new healthcare laws.
“We raise rates only when absolutely necessary to pay the accelerating cost of medical care for our members,” the nonprofit insurer told customers last month.
In all, Blue Shield said, 193,000 policyholders would see increases averaging 30% to 35%, the result of three separate rate hikes since October.
Nearly 1 in 4 of the affected customers will see cumulative increases of more than 50% over five months.
While most policyholders received separate notices for the successive rate hikes, others were given the news all at once because they had contracts guaranteeing their rate for a year, Blue Shield spokesman Tom Epstein said.
Michael Fraser, a Blue Shield policyholder from San Diego, learned recently that his monthly bill would climb 59%, to $431 from $271.
“When I tell people, their jaws drop and their eyes bug out,” said Fraser, 53, a freelance advertising writer. “The amount is stunning.”
Click to continue reading the full article from the LA Times on Blue Shield’s intended rate hikes.
Article by Duke Helfand, Los Angeles Times
© COPYRIGHT LA TIMES, 2011
Photograph by Refracted Moments™
