June 20th, 2011|
June 20, 2011
Despite today’s economy, the public is still seeing increases in the prices paid for essential services such as insurance. San Francisco Chronicle affiliate, SFGate.com, reported that although most policy holders throughout the entire insurance industry will see an increase in policy rates, some insurance companies are backing off of their originally proposed increases for fear of protest from policy holders.
Aetna agreed to lower the increases beginning July 1 for around 43,000 policyholders from 17.9% t to a 12.2% rate hike. They are the third major insurance provider to lower proposed increases in the state of California. Anthem Blue Cross recently lowered increases for roughly 600,000 customers and Blue Shield of California abandoned the idea of increases that could go as high as 87% for some policyholders.
The retreat by insurers comes in the light of major scrutiny by the state’s Department of Insurance. Speaking on the recent announcement from Aetna, Insurance Commissioner Dave Jones reminded Californians that despite the reduced increases, policyholders have endured hikes year after year. He used the opportunity to further discuss and promote Assembly Bill 52, which would give him the authority to reject excessive rate increases by insurance companies.