Blue Shield of California puts the screws to customers

Medical insurance premiums have been out of control for many years, but evidently somebody forgot to send Blue Shield of California the memo. The Los Angeles Times reports that Blue Shield has stunned California policyholders with a offer to start insurance premium hikes as high as 59 percent on March 1. The change would affect tens of thousands of customers. This hike without any doubt will send numerous Blue Shield policyholders running for payday loans in order to pay their premiums. Source of article – Blue Shield of California wants 59 percent rate hike by MoneyBlogNewz.

The ruling on the Blue Cross that the Blue Shield of California needs to view

Californians hope that Blue Shield of California will learn from history. Less than a year ago, Anthem Blue Cross reportedly tried to make a 39 percent rate hike for 700,000 Californians stick, but the measure failed to pass. There will always be a concern for over-billing since the costs of health care just keep going up.

“We raise rates only when absolutely necessary to pay the accelerating cost of medical care for our members,” said a Blue Shield of California representative.

Between 30 and 35 percent for an insurance rate hike

There's usually a 30 to 35 percent increase for 193,000 Blue Shield of California customers on average even though it seems dramatic to create a 59 percent insurance premium. However, one in four customers would be affected by a 50-plus percent increase over the next five months.

There will be an early test for state Insurance Commissioner Dave Jones. This is all because of the premium increase from Blue Shield of California.

“Blue Shield’s increases poses the same problem posed by Anthem Blue Cross last year and other health insurers as well,” said Jones. “My hope would be that Blue Shield would reexamine these rate hikes, particularly in the face of the impact they are having on individual policyholders.”

Creative accounting

Even if Blue Shield of California’s health insurance premium hikes go into effect, success will not be immediate. The company will lose "tens of millions of dollars on individual business" in 2011. This is what Blue Shield spokesman Tom Epstein explained.

Citations

LA Times

latimes.com/health/healthcare/la-fi-insure-rates-20110106,0,6975599.story

Blue Shield needs more money to make commercials like this

youtube.com/watch?v=l5qZSsrJ4QA