Blue Shield apparently gave up on their fight with Dave Jones and the Calif. Dept. of Insurance, as they dropped their plans to raise individual rates this year. Individual customers will see level rates unless they hit a 5-year birthday or move to a more expensive area. Anthem-Blue Cross, Aetna, and Pacificare haven’t yet responded but I boldly predict that they will follow suit and try to wear “white hats” as good guys.
I’m most confident about Anthem doing this as their rates are already high enough to be slowing new enrollments. Aetna’s individual rates are low enough that a modest increase, maybe as early as June, would still keep them competitive.
The Blue Shield statement includes some “pity-me” language—they lost $27 million on this part of their operation last year, and will lose more in 2011. Seniors, groups, and dental insurance customers must be subsidizing individual health customers at least in part. Blue Shield, as a nonprofit, doesn’t have deep pockets and can’t lose money like this forever.
Then Shield brags about being “part of the solution” for their partnership with Mercy Hospitals to reward effective medical practice and keep costs controlled better.
The SF Chronicle effectively states the basic facts today. You can read Blue Shield’s press release under “News” at the Blue Shield of California website.
