It’s déjà vu all over again—almost a year ago exactly Anthem, the California division of Blue Cross health insurers, proposed raising rates on individual policy holders by as much as 39%.
That rate increase was stalled and eventually scaled back due to mathematical inaccuracies in Anthem’s rate filings, as pointed out by the California Insurance Commissioners office.
This time around Anthem has notified its individual plan holders that rates will be going up effective May 1, creating a cumulative rise in rates in excess of 40% for some consumers in less than a year.
Anthem claims that its individual policies remain competitively priced, and that the policies actually operated at a loss in 2010 in California. Anthem is not alone in seeking new rate increases, as Blue Shield has proposed cumulative increases for some of its individual policyholders that could top out at 59%. Is there any relief coming for holders of individual insurance policies in California?