Michigan lawmakers have failed to obtain an exemption from the federal government regarding the new medical loss ratio provision of the Affordable Care Act. The provision requires the state’s health insurers to pay no less than 80% of the money they collect from premiums on improving medical care. If insurers cannot meet this standard, they must return the money to policyholders. Legislators in Michigan have been fighting for an exemption, but federal legislators denied the effort early this week. According to state regulators, consumers may be eligible for $89 million…
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Insurers in Massachusetts gain approval for health insurance rate increases
Massachusetts insurance regulators have approved a number of rate increase proposals from some of the state’s largest health insurance companies. Governor Deval Patrick supports the approval, citing rising health care costs that threaten to make an already ill economy more volatile. Consumer advocacy groups have decried the rate increases, saying that they put undue financial stress on those struggling to make ends meet. Regulators, however, have only approved proposals whose increases were less than 9% in the hopes of lightening the impact of higher rates. Blue Cross Blue Shield has…
Read MoreOccupy Wall Street protestors target Blue Cross Blue Shield
As snow falls in New York City, the protestors of the Occupy Wall Street movement have set their sights on the health insurance industry. Last week, hundreds of protestors marched to the Empire Blue Cross Blue Shield offices, which are located close to Zuccotti Park, where the Occupy Wall Street movement has taken root. The march culminated at the St. Vincent’s Hospital in Greenwich Village, which had closed in April of this year due to crippling debt. Protestors are demanding the reopening of the hospital, which had accrued more than…
Read MoreMichigan is home to the nation’s fourth worst insurance market, according to report
A recently released report from the American Medical Association casts some doubt on the insurance market in Michigan. The report shows that the state has the fourth least-competitive health insurance market in the U.S. The findings are the result of rigorous studies done throughout the country to find how many companies are actually participating in the various markets. The lackluster status of Michigan’s market may be due to the fact that Blue Cross Blue Shield encompasses the majority of the market. According to the report, the large insurance corporation controls…
Read MoreBlue Cross Blue Shield of California to return millions of dollars to policyholders
Last year, California health insurer Blue Cross Blue Shield announced that it would be returning more than $160 million in surplus profits to its 2 million policyholders. Amidst accusations of profiteering, the company has announced another wave of refunds that will total $283 million, which will begin being sent out in December of this year. Most of the rebates will come in the form of credit on insurance bills. The company notes that December’s refund will likely cut policyholder’s bills by at least half. Individual policyholders can expect to see…
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