March 14, 2011 — As of May 1, Blue Cross Blue Shield of Michigan (BCBS MI) will raise rates on its individual insurance plans in accordance with a settlement it reached with Michigan’s Office of Financial and Insurance Regulation and Attorney General Bill Schuette. Individuals under the age of 65 and those who have Legacy and Plus insurance plans will be affected.
In response to the settlement, Insurance Commissioner Ken Ross said, “A rate increase of 9.3 percent is certainly better news for more than 100,000 Michigan consumers than the 15 percent hike originally proposed.” ACA also reported on a similar issue in which Blue Cross Blue Shield of California ignored the California insurance commissioner’s request to delay the increase of insurance rates.
These are just two examples of a nationwide trend in which insurers are raising health insurance rates. In fact, Health and Human Services Secretary Kathleen Sebelius sent a letter last September to America’s Health Insurance Plans’ President, Karen Ignagni, to express her disapproval of this trend.
In her letter, Sebelius stated that insurers should not use the Patient Protection and Affordable Care Act as an excuse for unjustified increases in insurance rates. To learn more about the story in Michigan, click here.
Source: American Chiropractic Association, www.acatoday.org