Huge Health Insurance Rate Hikes Proposed for California

Thursday, 13 Dec 2012 10:38 AM

By Bill Hoffmann

  Comment  |
   Contact  |
  Print  
|  A   A  
  Copy Shortlink
One of California’s top health insurers is calling for whopping rate hikes of up to 20 percent despite the fact it has a reserve fund of $3.9 billion.

And angry health care advocates say that Blue Shield of California should be using some of that huge sum to help reduce the proposed hikes, The Los Angeles Times reports.

"Blue Shield is sitting on a huge surplus that is beyond what is required or necessary," Laurie Sobel, a senior attorney for Consumers Union in San Francisco, told the newspaper.

"It should be used to hold down rate increases when it hits these extraordinary levels."

Blue Shield is seeking an average rate increase of 12 percent for more than 300,000 customers, with a maximum increase of 20 percent. The increases, if approved, would go into effect in March.

The insurance company said its substantial reserves have been stockpiled for the future benefit of policyholders.

"Reserves are needed to ensure our members' claims can be paid no matter what. We need them to protect against uncertainties like a pandemic or another crisis," Blue Shield spokeswoman Lindy Wagner told the Times.

California regulators are reviewing the proposed hikes and are expected to make a decision on them early next year.

© 2014 Newsmax. All rights reserved.

  Comment  |
   Contact  |
  Print  
  Copy Shortlink
Around the Web
Join the Newsmax Community
Please review Community Guidelines before posting a comment.
>> Register to share your comments with the community.
>> Login if you are already a member.
blog comments powered by Disqus
 
Email:
Country
Zip Code:
Privacy: We never share your email.
 
Hot Topics
Follow Newsmax
Like us
on Facebook
Follow us
on Twitter
Add us
on Google Plus
Around the Web
Top Stories
You May Also Like

Matt Towery: Give Thanks - the Nation Is on the Rebound

Thursday, 27 Nov 2014 10:43 AM

Most of us haven't felt any personal "economic recovery" in our own pockets. But contrary to my often doom-and-gloom out . . .

GOP's Tom Cotton Thanks Troops for Sacrifices on Thanksgiving Day

Thursday, 27 Nov 2014 09:22 AM

Senator-elect Tom Cotton delivered the GOP's weekly address on Thanksgiving Day, thanking the military for its sacrifice . . .

Gallup: Only 27% of Working-Class Whites Support Obama

Thursday, 27 Nov 2014 08:33 AM

And 41 percent of white college graduates approve of President Obama's job performance , the largest gap between working . . .

Most Commented

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

 
NEWSMAX.COM
America's News Page
©  Newsmax Media, Inc.
All Rights Reserved