Blue Shield CA Cumulative Rate Increase Could Exceed 85% For Some

The newest rate increase on Blue Shield CA/Blue Shield L&H individual and family plans in California is now set for May 1, 2011. It was originally scheduled for March 1, however it was delayed 60 days at the request of California Insurance Commissioner Dave Jones.

This rate increase represents the third rate increase on Blue Shield family plans since October 2010. Blue Shield increased rates on 10/1, again on 1/1/11 to accommodate PPACA (ObamaCare) and now again on 5/1/11. For some these rate changes will have a cumulative increase of over 85% in just seven months.

Blue Shield, even with the rate increase projects losses in individual & family business in California of $20-$30 million in 2011. They lost $27 million in 2010. By contrast Anthem Blue Cross CA estimates losses as high as $100 million on the same business for 2011 with almost $70 million lost in 2010.

See the LA Times article by Duke Helfand.

Dave (


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