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“Blue Shield’s rate hike of up to 59% hits its approximately 200,000 policyholders very hard. It comes at a time when many Californians continue to struggle. These health insurance rate hikes are not sustainable,” he said.
Jones said he was disappointed that Blue Shield has not agreed to what he considered a reasonable request that they delay the implementation of their March 1, 2011, rate increase.
He said he made the request in light of the fact that he had been sworn in only for 72 hours and wanted to make sure that he had the time needed to review their rate filing for compliance with a new state law, SB 1163, that went into effect Jan. 1.
SB 1163 requires the insurance commissioner to review the reasonableness of health insurance rate increases. It does not give the insurance commissioner the authority to reject unreasonable rate increases.
Despite Blue Shield’s unwillingness to delay their rate increase, the Department of Insurance will conduct a full and complete review of their rate filing, Jones said.
“Blue Shield is required by SB 1163 to obtain an independent actuarial certification of the reasonableness of their rate filing,” Jones said. “Their announcement today that they are hiring an actuary is something that is already required by law. We will request full disclosure of all information necessary to determine the reasonableness of the rate increase under SB 1163. We expect full compliance with SB 1163.”
Jones said the Blue Shield rate increase underscores the need for the Legislature to give the insurance commissioner the authority to reject excessive premium increases.
“I do not have that authority now. I have been fighting to get that authority,” he said. “As a state assemblymember I authored bills to give the insurance commissioner the authority to reject excessive premium increases. I look forward to working with Assemblymember Feuer who has re-introduced this legislation.”
