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Aetna withdraws filing for California rate hike
NEW YORK |
NEW YORK (Reuters) - Health insurer Aetna Inc has withdrawn its filing for rate increases in California after "substantial mathematical errors" were found, according to state regulators.
Aetna, whose shares fell more than 2 percent, is the second major health insurer, after WellPoint Inc, to withdraw its rate filing request in the most populous U.S. state after errors were found.
State rate filings have come under greater scrutiny across the country. President Barack Obama warned insurers on Tuesday not to use the recently passed healthcare overhaul as a opportunity to push through big rate increases.
Aetna's filing would have increased rates by an average of 19 percent on its 65,000 policyholders, according to the California Department of Insurance.
During an internal actuarial review, Aetna found a miscalculation that it attributed to a "simple human error," the company said in a statement. It said it informed the California insurance department as soon as it found the mistake.
The No. 3 U.S. health insurer said it had not yet implemented the proposed rate changes and that there was no impact to its members with individual health plans in California.
WellPoint's Anthem Blue Cross unit in April withdrew its filing to raise rates by an average of 25 percent in California. Democrats had strongly criticized the company's proposed rate hike as they rallied support to pass the health reform law.
California Insurance Commissioner Steve Poizner said he would post future individual health insurance filings on the department's website, calling the move an "exceptional step" that he hoped would increase pressure on insurers to avoid errors.
"Given that two of the four major health insurers have provided rate filings containing math errors, I believe an additional level of transparency is warranted," Poizner said in a statement.
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How very interesting, Aetna made a mistake in their calculations.
I wonder if they made a similar mistake in their calculations like just raising their healthcare premiums more than “35%” in New York for their Individual Advantage Health care plan(s) which are paid directly by individuals (who are likely out of work and need coverage for their families and themselves—and are probably already in dire financial distress).
To quote directly from their recent premium increase letter;
“Dear Mr. New Yorker, This letter is to inform you that effective August, 2010 there will be a change in your monthly rate. Your new rate will be $1230.00 (”per month”). These changes reflect adjustments in general medical and hospital costs.”(Period). No other explanation whatsoever-just–shocking.
And with such little regard for the comments just made by President Obama who only recently warned the healthcare insurers not to go and raise rates as a result of the government’s updated health-care legislation. This just shows what little regard the insurance corporate- executives have for anyone other than themselves and their already inflated salaries! I believe it’s the equivalent to again kicking a decent American on the ground after they had already fallen down in pain!!
Where are our State and Federal officials when you need them to protect the average American citizen from these corporate thieves? We pay large percentages of our earnings into State and Federal taxes for something? But unfortunately we receive very little in return. Unless I missed it, there should have been a moratorium on any excessive health-insurance premium increases in the interim period before the federal health-care bill actually becomes “fully” implemented. Good luck to all–AmericanOne.
How very interesting, Aetna made a mistake in their calculations.
I wonder if they made a similar mistake in their calculations like just raising their healthcare premiums more than “35%” in New York for their Individual Advantage Health care plan(s) which are paid directly by individuals (who are likely out of work and need coverage for their families and themselves—and are probably already in dire financial distress).
To quote directly from their recent premium increase letter;
“Dear Mr. New Yorker, This letter is to inform you that effective August, 2010 there will be a change in your monthly rate. Your new rate will be $1230.00 (”per month”). These changes reflect adjustments in general medical and hospital costs.”(Period). No other explanation whatsoever-just–shocking.
And with such little regard for the comments just made by President Obama who only recently warned the healthcare insurers not to go and raise rates as a result of the government’s updated health-care legislation. This just shows what little regard the insurance corporate- executives have for anyone other than themselves and their already inflated salaries! I believe it’s the equivalent to again kicking a decent American on the ground after they had already fallen down in pain!!
Where are our State and Federal officials when you need them to protect the average American citizen from these corporate thieves? We pay large percentages of our earnings into State and Federal taxes for something? But unfortunately we receive very little in return. Unless I missed it, there should have been a moratorium on any excessive health-insurance premium increases in the interim period before the federal health-care bill actually becomes “fully” implemented. Good luck to all–AmericanOne.
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