Blue Shield Seeks Huge Rate Hikes
LOS ANGELES (AP) -- Blue Shield of California is seeking another round of rate hikes that would mean a cumulative increase averaging over 30 percent over a five-month span for nearly 200,000 policy holders.
The Los Angeles Times says Wednesday that another rate hike is set to take effect March 1 pending approval from state regulators to go with similar increases in October and this month.
The news has stunned many policy holders who are guaranteed the same rate for a year and received notice of all three increases at once.
The San Francisco-based insurer blames the new rates on rising healthcare costs.
New Insurance Commissioner Dave Jones can only block the hike under a narrow set of criteria.
(Copyright 2011 by The Associated Press. All Rights Reserved.)
