CA Approves Insurance Premium Increases

The Los Angeles Times reports that California’s largest for profit insurer, Anthem Blue Cross, won state approval for an average 14% premium rate hike for individual policy holders. In finding that Anthem's new rates would meet the 70% state Medical Loss Ratio (MLR) minimum, California regulators allow Anthem to proceed with the rate hikes.  The increase is effective October 1, 2010.  The rate hike follows Wellpoint’s (Anthem’s parent company) withdrawal of a 39% rate increase request earlier this year.  State lawmakers are considering bills (AB 2578, SB 1163) that would require state approval of all future health insurance rate increases and not simply a review to determine if the rates meet MLR requirements. The public spotlight was on Wellpoint's and other insurer's rate increase requests this year due to the national focus on health system reform.

Read more at Californiahealthline.org.