Insurers eager to maintain authority over healthcare premiums
While most of us face uncertainty with the rollout of healthcare reform, some insurance companies in California have been feeling their oats lately. Here's how they're responding to Insurance Commissioner Dave Jones' warnings that their latest rate increases are unreasonable: Stuff it, Dave.
That essentially was the response of Blue Shield of California and Anthem Blue Cross after Jones flayed their proposed premium hikes — up to 20% for Blue Shield customers and up to 18% for Anthem. The companies moved to implement the increases anyway, although Anthem thought better of it after it started charging the higher rates, and reduced them a bit. Anthem further said it would start passing on to customers a fee related to the federal Affordable Care Act this year, which Jones considered unlawful since the government fee doesn't go into effect until next year.
Do you sense a trend? Jones does. "They're continuing to raise rates with impunity," he told me recently. And he knows the reason: State law doesn't require his approval before a health insurance premium goes into effect.
Jones has been fighting for prior approval of health insurance premiums for six years, dating to his terms as an assemblyman from Sacramento. About 34 states give government officials such authority, although the extent of the pre-approval power varies and not every state exercises it with the utmost vigor.
http://www.latimes.com/business/la-fi-hiltzik-20130327,0,1556563.column
