Reviews of health insurance rate hikes

Actuary David Axene, a state consultant who found errors in Woodland Hills Anthem Blue Cross' rate filings, is expected to deliver his findings by mid-August to the California Insurance Commissioner on two of its competitors, Aetna Inc. and Blue Shield of California. Axene is trying to determine whether the insurers spend at least 70 cents of every dollar they collect in premiums on medical claims, as required by state law. Axene found numerous calculation mistakes in Anthem's paperwork in April, prompting California's largest for-profit health insurer to cancel rate hikes averaging 25% -- and reaching as high as 39% -- for many of its estimated 800,000 individual policyholders. Axene also will review a filing submitted July 15 by Health Net Inc. and report back in six weeks. Health Net is seeking an average 16% rate hike for 38,000 individual policyholders.
Source: LA Times
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