Patt Morrison

<em>Patt Morrison</em> is known for its innovative discussions of local politics and culture, as well as its presentation of the effects of national and world news on Southern California. Hosted by

Blue Shield lowering premiums

by Patt Morrison

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The Anthem Blue Cross headquarters. David McNew/Getty Images

Blue Shield of California has announced that it will reduce, your read that right, reduce premiums by 2.5% for many of its policyholders. The health insurance giant has been under the watchful eye of regulators and Congress for enacting a series of steep rate increases. The adjustment should be reflected in subscribers’ October bill and will amount to about $167 million in savings for its 2 million customers. And as if that wasn’t enough, the company says that it will cap its earnings to no more than 2 percent of annual revenue. Anything Blue Shield makes above and beyond the cap will be refunded to policy holders. The company plans to return $180 million for 2010. Why did Blue Shield decide to lower its premiums and give back money to its subscribers and how much?

Guest:

Doug Heller, executive director, Consumer Watchdog

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