A Blue Cross Blue Shield of California proposed rate increase might mean health insurance rate hikes of 30 to 60 percent for customers, HHS Secretary Kathleen Sebelius says this is not a result of the health care law, also known as Obamacare.
Blue Shield of California is seeking health insurance rate hikes of almost 60 percent for certain customers. If the rate increases are approved, they would take effect on March 1 and roll out over a period of five months.
According to ABC News, about 193,000 policyholders would be affected by the change. The average rate increase, if approved, would be 30 to 35 percent.
The news surprised many policyholders. They were guaranteed the same rate for a year. At one time, they got notice of three rate increases.
Complaints about the increased rates have already been filed with the California Insurance Commissioner Dave Jones.
This attempt to raise rates comes less than a year after Anthem Blue Cross attempted and failed to raise rates up to 39 percent for about 700,000 California customers.
Last month, the Blue Shield told customers, “We raise rates only when absolutely necessary to pay the accelerating cost of medical care for our members.”
According to the Los Angeles Times, 1 in 4 affected customers will see cumulative increases of health insurance rates of over 50 percent over 5 months.
Jones stated the move by Blue Shield underscored a need for legislature to give the insurance commission the legal authority to regular insurance rates, just as he does vehicle coverage.
As customers marvel at the large rate increase, HHS Secretary Kathleen Sebelius stated about the proposed rate increase, “The people of California have a right to be concerned when they see this kind of rate increase month after month. We have reached out to California Insurance Commissioner Dave Jones and know he is doing everything in his power to help consumers. We stand ready to assist him and the people of California in any way that we can.”
Sebelius further said, “Some have incorrectly claimed that this increase were the result of the health care law.
Nothing could be further from the truth. Blue Shield pointed out in their statement this morning that their increases are not the result of the Affordable Care Act.”
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2 comments:
Actually Sebelius, the claim was the "Healthcare bill" would prevent/stop such increases. It's been shown it doesn't.
My rates, as an employer, went down this year for exactly the same coverage. BC/BS Choice with HSA
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