Aetna Withdraws it 19% Rate Elevation for Individual Policyholders
Aetna Withdraws it 19% Rate Elevation for Individual Policyholders

It has been informed by the state regulators on Thursday that one more insurance company in California has rejected its plans for double-digit rate hikes of the individual policyholders, due to the errors in its filing, which could have resulted in inflated premiums.

Earlier, Connecticut-based Aetna Inc. intended 19% elevation in the rates for its 65,000 individual customers. It later withdrew the offer following some multiple math mistakes in its paperwork, which were pointed out by its own staff. The same error was also confirmed by an independent consultant, who was working for the state.

After the decision of Aetna, Anthem Blue Cross cancelled an upsurge of rates to 39% for most of its 800,000 California policyholders. The Anthem’s decision was taken in the month of April, after the calculation errors highlighted by state consultant in the filing at the California Insurance Department.

Following this, the state consultant initiated a review of paperwork that was submitted by Aetna and Blue Shield of California for evaluating the rate hikes.

It was also informed by the regulators that even the records of the fourth insurer Health Net Inc. will be inspected.

According to the Aetna spokeswoman, the miscalculation was found in the third round of the review and that it was not earlier detected.

Spokeswoman, Anjanette Coplin said that the mistake was a “simple human error" and that after knowing it, California Department of Insurance was informed.

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