Blue Cross in California Reworks The Algorithms and Announces a 20% Rate Increase Effective September 1st
Posted Jul 01 2010 6:44am
With current laws in California, insurers can raise rates as long as at least 70 percent of premiums are spent on medical claims. With other carriers, Aetna is asking for a 19% increase and Blue Shield is asking for 18%. We still are not sure what the exact Medical Loss Ratios are.
With the last increase the company was requested to visit Washington and explain. We spend all this time certifying EHR medical record systems, and yet we have to live with “whoops” and other areas of potential corporate responsibility that is questionable. Last year I posted about needing a Department of Algorithms so we can certify how the transactions and calculations should project and it looks like we are getting closer to having a real need for this or something similar along this line.
If you missed the post below it’s worth a read as some of the subsidiary actions of insurance carriers are discussed and who they are. It’s not all just about health insurance any longer as health insurers, just as private equity firms do are bringing more companies together to work as teams, in other words one subsidiary shakes the hand of the other when it comes to data and business intelligence.
When press releases come out it sometimes gets by us as we may not be familiar with the subsidiary company name, but they are working together today and it is changing the face of health insurance as some subsidiary companies produce software, some move products and goods, some consult with the FDA and more. It’s not the same simple business it started out to be years ago. BD
Embattled health insurer Anthem Blue Cross is reviving its plan to raise rates for tens of thousands of California policyholders, some of whom could see their premiums rise as much as 20%.
California's largest for-profit insurer submitted new rates Wednesday amid pressure to scale back increases of as much as 39% that had provoked fury from consumers, lawmakers and even President Obama.
Eager to avoid another public backlash, Anthem and its corporate parent, Indianapolis-based WellPoint Inc., now are seeking a maximum increase of 20%, with an average hike of 14%. The original proposal called for an average increase of 25%. The new rates would take effect Sept. 1.