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Blue Shield of California to limit net income to 2 percent of revenue
Healthcare Finance News

In a turnaround from earlier this year when it requested rate increases of more than 59 percent for some policy holders, Blue Shield of California announced yesterday it would limit its net income to no more than 2 percent of revenue.

The announcement, made by company CEO Bruce Bodaken in a speech to the Commonwealth Club here, comes as the insurer has come under intense public scrutiny for its proposed increases and as the state Senate is set to vote on a bill that would allow the California insurance commissioner to reject or modify health insurance rate increases deemed as excessive.