The California insurance commissioner asked all to delay their increases and Blue Shield was the last hold out and now it appears to be cancelled with no increases for the rest of the year according to the article in the LA Times. Blue Shield is a not for profit while most of the other big carriers are for profit and are bought and sold on the stock exchanges.
Blue Shield was asked to present a study showing the needs for the increases as well and perhaps this may have entered into the decision making processes too as if that’s not substantiated, then the California Insurance Commission can swing into action. BD
Nearly 200,000 customers will be affected by Blue Shield of California's decision to cancel a May 1 rate increase. The hike, averaging 6.5% and going as high as 18%, would have been the third in recent months by the company, which had faced pressure from state officials and consumers.