Health Coverage Premium Hikes Delayed
January 2011
For state citizens dreading the latest increase in costs for California health insurance it appears there will be a short reprieve.
Blue Shield of California is now the fourth insurer to agree to a delay in projected rate hikes for their health coverage. The delay will last 60 days while the Department of Insurance audits the projected rate increase of 6.5 percent.
Blue Shield has been the focus of protest and intense scrutiny in light of recent increases in the cost for their
California health insurance. Health coverage costs went up 19 percent just last October, and another 4 percent by January.
Blue Shield spokespeople are suggesting that the rate hikes are due to economic strain - healthier people are dropping their coverage due to an inability to afford high premiums. This means that only unhealthy people are willing to keep their
health coverage, and this costs insurance companies more money.
Facts on:
Blue Shield California Health Insurance
Did you know...
The insurance giant has been the subject of intense scrutiny regarding rate hikes for their health coverage.
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However, Blue Shield has also been accused of unfairly rejecting claims. According to the Consumers Union, they rejected 21.9 percent of their claims in the first three quarters of 2010.
Blue Shield argues that they account for such claim rejections by a different system, based on eligible claims received for their California health insurance.
Nurses have also been protesting Blue Shield's health coverage offices in San Francisco. However, the company claims that their decision to delay rate hikes had nothing to do with the protests.
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