Aetna withdraws Calif health insurance rate hike

A state official says a second California health insurer has withdrawn a proposed rate hike after an independent review discovered major errors.

Insurance Commissioner Steve Poizner said Thursday that Aetna's rate filing had significant mathematical errors, and would have boosted rates an average of 19 percent for its 65,000 policyholders.

Poizner has ordered independent reviews of all rate hikes made by the state's four biggest insurers for individual policies, to ensure they comply with state law.

California health insurers are required to spend 70 cents of every dollar collected in premiums on medical benefits.

Anthem Blue Cross withdrew a rate hike in April.

Aetna did not immediately return a call from The Associated Press

Copyright 2010 The Associated Press.

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