When Blue Shield of CA tried to pull a big increase like this not too long ago, they described themselves as a "non-profit" whose profit was "only" two percent. (Always misleading to use percentages instead of numbers -- from looking at their
When Blue Shield of CA tried to pull a big increase like this not too long ago, they described themselves as a "non-profit" whose profit was "only" two percent. (Always misleading to use percentages instead of numbers -- from looking at their financial information, I'd guess that two percent was close to a billion.) While strictly speaking, the company is a non-profit, they neglect to mention their wholly-owned subsidiary, Blue Shield of California Life & Health Insurance Company and its affiliate, CareAmerica Life Insurance Company:
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.
After as Susie wrote about here back in January, Blue Shield of California was seeking to hike their rates as much as 59%, it looks like they've now backtracked and are going to return $167 million to policyholders.
Naturally this horrified Forbes on Fox host David Asman and some of his fellow panel members who opened his weekend show on Fox News like this: Read more...