InsuranceThought — Blogs About Insurance

The DC insurance regulator announced to the nation this week that he has rescinded the 35% increase in healthcare insurance premiums for the not-for-profit insurer, CareFirst BlueCross BlueShield that had been previously approved.

The rate increase was approved in October of 2009, but following a consumer plaint, the agency looked into further approval. Additional details requested from the insurance organization concluded that a mistake was made in the original filing.

CareFirst BlueCross BlueShield has been instructed to return to the previous rate level and return the excess charges along with 5% interest to the consumers. Rate increases are pending the filing of a new application; meanwhile rates have returned to their original cost levels.

Reminiscent of the 39% rate increase imposed by WellPoint that was implemented earlier in 2010, the increase caught the attention of the California insurance regulator as well as that of President Obama. WellPoint had also agreed to put its rate increases on hold.

These two insurance organizations’ rate increases lead me to wonder just how many healthcare insurance providers have implemented rate increases this year. Hopefully regulators in all states will be checking for these steep rate increases and making sure they remain in check. I, for one, know that an increase in my state’s insurance costs of 39% would be detrimental not only to me, but to everyone I know.