News Headlines Article

Limit insurance premiums, not profits
San Francisco Chronicle

The CEO of Blue Shield of California announced in the Tuesday Open Forum that because of these trying times he was willing to limit his company’s profits to 2 percent. For a not-for-profit health insurance company like Blue Shield, which has more than $3.6 billion in reserves, that’s 2 percent too much.

The real intent of CEO Bruce Bodaken’s announcement was to show the company is no longer the poster child for fast-moving legislation that would require every health insurance company in California to request permission from the elected insurance commissioner before raising rates.