News Headlines Article

Blue Shield cancels insurance rate increase
Los Angeles Times

Blue Shield of California’s decision to cancel a big rate hike for nearly 200,000 people followed mounting pressure from the public and political leaders. But an unforeseen factor may have made the retreat easier for the company to accept: It’s paying out less for medical claims than it had anticipated.

And it’s not just Blue Shield. Major insurers including WellPoint Inc. and Aetna Inc. also say that medical spending has been lower than projected recently, saving the companies millions of dollars in payouts.

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