Blue Shield of California cancels latest rate hike

This one would have taken effect May 1, with the increase averaging 6.5 percent and going as high as 18 percent. But it would have come on top of two other hefty rate hikes in October and January. All three would have raised some monthly premiums as much as 86.5 percent, and I guess even Blue Shield must have figured that it was going too far. From the press release:

"We have long acknowledged that the individual health insurance market is broken and we are pleased that the rules will change in 2014," [said CEO Bruce Bodaken] "But health reform will succeed only if we restrain the rising cost and utilization of medical services that is driving premium increases. We are dedicated to working collaboratively with providers and regulators to address that issue."

From SF Business Times:

Blue Shield has 340,000 individual and family plan enrollees in the state. Those types of policyholders, whether at Blue Shield of California, Anthem Blue Cross and other insurers, have taken the brunt of the large rate increases announced this year and last year. They also tend to cost more to insure. Generally speaking, group plan enrollees -- who obtain insurance through their employers -- have seen much more modest increases.