News Headlines Article

Blue Shield dumps one-year rate guarantee
Sacramento Business Journal

Blue Shield of California will discontinue its 12-month rate guarantee for new individual and family plans, effective Oct. 1. The move will allow the plan to hike rates as needed rather than wait for annual renewals, but each rate hike will have to be approved by the state Department of Insurance. The San Francisco-based health plan blames upcoming changes under federal health care reform and California law for a shift in policy that’s been in place for decades. The announcement — sent to brokers last week — raises speculation that other plans will do the same.