The watchdogs have completed an assessment of a health plan by Aetna Inc., which will witness a boost in the health insurance premiums of over 1 million California residents.

It is reported that on an average, there will be a 19% hike in the premiums for 65,000 individual policyholders. On Friday, Aetna got a go-ahead signal from the state Department of Insurance to move ahead with its new plan.

The surge in rates would be effective from Oct. 1.

It is notable that the Company was among the four chief insurers that was evaluated by the dept. and received approval to increase the premiums, after Anthem Blue Cross, Blue Shield of California and Health Net Inc. in the last month.

It is believed that if the insurers adhere to the California law, the insurance department does not have any right to stop them from increasing the rates. As per the law, the insurers have to give a minimum of 70 cents of every premium Dollar to medical claims.

And it is reported that Aetna's plan complies with the law. Spokesman Ioannis Kazanis said, "The Department of Insurance in no way condones or supports these insurance rate increases on California policyholders, but the unfortunate reality is that legally insurers are entitled if their rate filings are found to be in line with state law".