California insurer (Blue Cross/Shield) backs away from 59% hike

[Rage for Order]

http://money.cnn.com/2011/03/16/news/companies/blue_shield_rate_withdrawal/index.htm?hpt=Sbin

Nearly 200,000 Blue Shield of California customers can breathe a sigh of relief. The health insurer announced Wednesday it will forego a new round of rate hikes that would have brought the increase for some policyholders to as much as 59% in the past year.

Blue Shield -- which had already raised premiums twice since October -- also said it will not increase rates for any individual or family plan member for the remainder of the year.

Tom Epstein, spokesman for Blue Shield, said the company had seen some backlash in recent weeks.

"It was becoming a major distraction," he said. "So we decided we would risk losing money in order to get the attention of the public back on what's really driving up health care costs, and that's rising medical costs. Health reform, we believe, will help manage those costs."


more at the link


Get it? The only reason they were going to raise rates by 59% was to focus the public's attention on what's driving up health care costs. Of course, it wasn't their 59% rate increase that was increasing costs, and they're willing to risk losing money instead of raising rates for the 3rd time in 6 months. What a bunch of dickweeds.

[WhiteTara]

1. as a healthy 59 yo woman, I gave up insurance

when BC charged me $800 a month, in 2004.

[Rage for Order]

2. You're costing them money

They actually mentioned that in the article:

Blue Shield said higher medical costs, greater use of medical care and a growing trend of healthier people dropping coverage during a bad economy, were the reasons for seeking the increases.

Quit making insurance more expensive for the rest of us, will you please? :sarcasm:

[WhiteTara]

3. you're right! Mea Culpa! n/t