Aetna Withdraws Request To Raise Rate in California - Complicated Internal Algorithm Errors
Posted Jun 25 2010 12:09am
Well first we had Blue Cross with errors and now Aetna, so perhaps their own algorithms are getting to complicated for internal use too? This again makes another good statement for “certifying payer algorithms” just like we do with EHR systems.
ALGORITHMS – INFLUENCE OR MAKE ABOUT 99% OF ALL THE DECISIONS HAPPENING TODAY – WE NEED ALGORITHMIC CENTRIC LAWS! Without these, how do we create audit tables that can not only audit health insurance and throw in the Federal Reserve as well.
Even the new government website to help consumers with selecting health insurance is getting a challenge as they can’t provide prices due to the complexity of the algorithms and in October they said at best there would be “estimates” of the costs to help consumers.
Aetna Inc. withdrew its request to raise prices for individual policyholders in California by an average of 19% after discovering a flaw in its rate filing with state regulators, according to the California Department of Insurance.
California Insurance Commissioner Steve Poizner, a Republican candidate for governor, on Thursday said Aetna's withdrawal was voluntary. The errors include incorrectly calculating the annual cost of monthly premiums and incorrectly compounding the increases year over year, a spokesman for the department said.
The increase, filed in March and scheduled to go into effect July 1, would have hit 65,000 policyholders. A spokesman for Mr. Poizner said it was too early to say what impact the miscalculations had on the proposed percentage increase. The request followed a 17% average increase last year.