Three California insurers have agreed to delay, by 60 days, rate hikes on premiums.
State Insurance Commissioner Dave Jones made the request to Anthem Blue Cross, Aetna and PacifiCare. “I am very concerned about the impact premium increases will have on policyholders, so I want to ensure that the Department has adequate time to review their recent rate filings,” says Jones.
The California Insurance Commissioner does not have the authority to reject premium increases, but reviews the proposals to make sure they are in compliance with state and federal law. The new Federal Healthcare Reform legislation requires that 80 percent of premiums paid go directly to medical care, and not insurance company overhead or salaries. This is something Jones plans to monitor.
Anthem’s rate hike, which averages out to a 9.8 percent increase for individual insurance policyholders, was scheduled to take effect on April 1st.