Special offer

Aetna withdraws California rate increase filing

By
Services for Real Estate Pros with QuoteBroker - aka Quote Broker

Aetna, a national provider of health insurance plans 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.

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. The request followed a 17% average increase last year.

The move draws renewed attention to the cost of health insurance just days after President Obama warned health plans against increasing rates. Health and Human Services Secretary Kathleen Sebelius has called on state officials to step up their oversight of premium increases, as keeping costs down is central to the success of the recently passed health overhaul.

In April Anthem Blue Cross of California pulled its plan to increase prices by up to 39% in California after an outside actuary found mathematical errors in its filings. Those rates, which affected 700,000 policyholders, drew national attention to California and became a rallying cry for reform advocates as they pushed to pass the law this winter and spring. Anthem BC could refile rates as soon as next week, according to a company spokeswoman.

The California insurance commissioner Mr. Poizner said he will post future filings online to increase transparency.

Compare all California Group & Individual rates in one place www.quotebroker.com In less than 2 minutes you can shop the California marketplace, compare plans and apply online. For assistance in selecting a plan call (800) 783-0802

Posted by

Vincent Kody
Insurance Company Insider

Comments (0)