As stated in an agreement that was announced on Monday by the State Department of Insurance, the Anthem Blue Cross will lower down its rate hikes that they planned for July this year. And the increases to co-payments and deductibles will also be seized until 2012.

In this regard, State Insurance Commissioner Dave Jones said, "This is good news for 600,000 policyholders. The decision means consumers can continue to afford coverage instead of having to give it up".

As estimated by Jones, as a result of this decision, the Anthem Blue Cross ratepayers will be able to save at least $40 million.

Anthem Blue Cross is known as the state’s largest health insurer and following this decision its members will experience the average premium going up by 9.1% from July 1 onwards.

During the end of last year, Anthem requested to have an increase of 9.8% in its plea filed with the state.

As stated by Anthem president Pam Kehaly, “I am pleased with the resolution, but that more must be done to control the unrelenting rise of underlying health care costs. We plan to be an active participant in helping forge that dialogue".