California Insurers Reduce Pending Rate Hikes for Small Groups

California State Insurance Commissioner Dave Jones recently announced that small businesses across the state will begin saving $48 million, following a decision from three insurers to reduce pending rate hikes that would have taken effect July 1, according to an Employee Benefit News report.

The rate hikes would have affected groups with fewer than 50 employees. The groups include Anthem Blue Cross, which withdrew a 2.5 percent rate hike; Blue Shield Life and Health, which provided a $1 million credit to 58,000 small businesses; and Aetna, which halved its proposed 2.6 percent premium hike for 9,200 employees.

Mr. Jones identified lower health insurance costs as a top priority for this year. He can review proposed health insurance rates but cannot deny or modify changes.

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