In some instances, consumers would see their health insurance rates skyrocket by up to 59 percent.
“I find it stunning that Blue Shield would seek to impose such massive premium increases on policyholders during these troubling economic times,” Jones said. “These premium increases will impose significant financial burdens on struggling families and, in some cases, will lead to the loss of health care coverage altogether.”
Jones also sent a letter calling on Blue Shield to refrain from moving forward with its rate increase for at least 60 days beyond the insurer’s proposed March 1 effective date.
Under current California law, the Insurance Commissioner does not have the authority to reject excessive premium increases; however, by asking Blue Shield for a delay in the implementation of its plan, the Commissioner will have the opportunity to ensure that all proposed increases have been thoroughly reviewed.
“Many Californians will no doubt be surprised to learn that the insurance commissioner does not have the legal authority to reject excessive health insurance premium increases,” Jones said.
He said he's fought to give that authority to the insurance commissioner's post over the last six years, including authoring strong legislation to give the commissioner the authority to reject excessive premium increases.
He said that legislation was defeated in the Legislature by conservative legislators. “I will continue to fight to pass this legislation.”