Residents in California will be in for a nice surprise as Blue Shield has decided to delay its plans to increase health care premiums from the 1st of May for individual and family members. The new announcement has come as it has suffered a lot of negative publicity in the recent past.

It was in the month of October that the insurance Company had come under a lot of criticism for increasing insurance rates. Following the hike in October another increase in premiums was made in January and it was planning to further increase it in spring; however, the increase has been postponed after the insurance firm had got a lot of negative publicity by the media and people.

Talking about the reason behind the increase, Blue Shield, Vice President Tom Epstein said that they wanted to communicate t their customers the reason behind the increases and that is why they have postponed the premium rate hikes. He further added that the Company was willing to lose out on $35 million to $ 40 million to do the needful.

Speaking about the decision taken by Blue Shield, California Insurance Commissioner Dave Jones said: "There's no question the year-after-year, double-digit increases that have been inflicted upon California consumers and California businesses are unsustainable".