KCAL Insurance Agency
Phone: (800) 681-8288 E-mail: info@kcal.net
Blue Shield of California to return money to customers
Under new federal regulations, insurers must spend at least 80% of consumers' premiums on medical care and not reserve that income for administrative costs or profit. But with consumers going to doctors less and often skipping treatment during tough times, insurers may not meet the 80% requirement and be obligated to issue refunds. Health insurer Blue Shield of California，which last summer said it would return $167 million in excess profit to nearly 2 million policyholders, now says it will give them an additional $283 million in December. Individual policyholders will see their December premiums reduced by an average $135. A family of four will get a $420 average cut, but the reductions could be as much as $700. Firms with two to 50 employees will get an average credit of $220 per worker. Larger companies will receive an average of $195 per employee.
Source:Los Angeles Times