Fifty-nine percent premium hike on table for Blue Shield of California

Health care insurance premiums have been completely out of control for years, but apparently somebody forgot to send Blue Shield of California the memo. As outlined by the Los Angeles Times, Blue Shield has shocked its policyholders with a massive increase proposal that will go into effect March 1, writes the Los Angeles Times. Tens of thousands of Blue Shield of California policyholders would be expected to pay more. This hike without any doubt will send many Blue Shield policyholders running for payday loans so that they can pay their premiums. Article source – Blue Shield of California wants 59 percent rate hike by MoneyBlogNewz.

Blue Cross ruling for Blue Shield of California

Blue Shield of California needs to learn from the past. Californians hope this happens. Less than a year ago, Anthem Blue Cross reportedly tried to make a 39 percent rate hike for 700,000 Californians stick, but the measure failed to pass. There will always be a concern for over-billing since the costs of health care just keep going up.

“We raise rates only when absolutely necessary to pay the accelerating cost of medical care for our members,” said a Blue Shield of California representative.

The normal hike for insurance rates will be between 30 and 35 percent usually

While a 59 percent insurance premium hike seems dramatic, the average increase for the approximately 193,000 Blue Shield of California customers would be somewhere between 30 and 35 percent. A 50 percent increase over the next five months is something one in four customers will be affected by.

Newly elected state Insurance Commissioner Dave Jones expects to be tested early, thanks to the proposed Blue Shield of California premium increases.

“Blue Shield’s increases poses the same problem posed by Anthem Blue Cross last year and other health insurers as well,” said Jones. “My hope would be that Blue Shield would reexamine these rate hikes, particularly in the face of the impact they are having on individual policyholders.”

Seeing the accounting

Success can't be immediate, even if the health insurance premium hikes start for Blue Shield of California. In 2011, Blue Shield spokesman Ton Epstein said that "tens of millions of dollars on individual business" will be lost by the company.

Information from

LA Times

latimes.com/health/healthcare/la-fi-insure-rates-20110106,0,6975599.story

Blue Shield needs more money to make commercials like this

youtube.com/watch?v=l5qZSsrJ4QA