Rate Hikes by Insurance Companies under Cloud
Rate Hikes by Insurance Companies under Cloud

Consumer groups across California are calling for a review in proposed increase in premium rates by insurance companies in the state. The move comes after errors in premium calculation by health insurer Anthem Blue Cross were found.

Health experts and consumer protection groups feel that the regulators need to take a closer look into the proposals of insurance companies willing to hike premiums for individual and for people getting insurance through their employers.

The recent calls have become more vocal after leading health insurer Anthem Blue Cross last week rolled back the hike in premium rates by around 40%. These increased premiums would have directly affected the company's 800,000 policyholders. An independent report had pointed out that there were a lot of errors in the way the company had sought to increase premium charges.

It has lead to calls for review of the proposed hikes by other insurance companies as well. These changes can have a direct impact on more than 5 million Californians who have taken these policies.

There are two state agencies that regulate insurance companies in the state of California. The plan of action taken by the Department of Managed Health Care is not clear. Insurance industry groups have already admitted their willingness to work with the regulators.

There are some who feel that increased scrutiny may not lead to anything till the regulators have the authority to reject unreasonable hikes by insurance companies.

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