Tuesday, April 19, 2011


DMHC questions recent Blue Shield individual rate increase calculations averaging 37.5 percent

(Sacramento) – The California Department of Managed Health Care (DMHC) has sent a letter to Blue Shield of California asking for an explanation of the calculations used to twice increase rates recently for approximately 70,000 enrollees in the individual market. The DMHC also released the following statement:

“Our action today helps to further rein in the „wild west‟ of rate increases for consumers in the individual health coverage market," said Lynne Randolph, spokesperson for the DMHC. “We are seeking this information to ensure that we, as regulators, are able to do our job in the spirit of the new state rate review law and provide as much transparency to consumers as possible.” A copy of the letter is attached.

Letter to Blue Shield of California