Aetna Scales Back Rate Increases for Individual Health Insurance Plans
Aetna recently scaled back its proposal to raise health insurance premiums for individual policyholders, Payers & Providers reports.
Earlier this year, Aetna submitted a filing to California Department of Insurance seeking an average rate increase of 17.9% for individual policyholders.
Last month, Aetna agreed to reduce its rate hike to an average of 15.6% after Insurance Commissioner Dave Jones (D) reviewed the company's filings.
New Rate Hikes
The latest reduction brings the rate hike down to an average of 12.2%. The new rates are expected to affect about 43,000 individual policyholders starting on July 1.
Jones said the scaled-back rate hikes could help Aetna's policyholders reduce premium spending by about $6.8 million over the next year.
A spokesperson for Aetna said the company is working with the Department of Insurance on its rate application.
In its previous filings, the insurer said that its health care costs increased by 14.9% in 2010 and are expected to increase by 12.5% in 2011 (Payers & Providers, 4/28).This is part of the California Healthline Daily Edition, a summary of health policy coverage from major news organizations. Sign up for an email subscription.