Aetna’s gift to California’s small businesses—a hefty increase in health insurance rates
December 18, 2014 - SACRAMENTO, Calif. - Insurance Commissioner Dave Jones announced today that his department actuaries found Aetna Life Insurance Company's recent rate filing on its small group policies both excessive and unreasonable. The average increase of 10.7 percent is effective January 1, 2015 will impact more than 64,000 individuals. For small business with renewal dates in the first quarter of 2015, the maximum increase is 19.5 percent.
"In the final days of 2014, one of the best gifts California small business owners could receive would be the promise of reasonable health insurance rates for the new year," said Insurance Commissioner Dave Jones. "Unfortunately, California law does not protect consumers and businesses from excessive and unreasonable health insurance rates. The ongoing trend of unreasonable rate increases imposed on California businesses and families over the last decade is likely to continue in 2015."
Department of Insurance actuaries reviewed the rate filing submitted to the department and found that the average 10.7 percent increase unreasonable. Unfortunately, Aetna's small group policyholders were charged an unreasonable rate in 2014 after the department found its April 2014 rate increase unreasonable, and 2015 is not any better, as policyholders face another unreasonable double-digit rate increase.
After the Department's health actuaries completed their analysis of the rate filing, the results were shared with Aetna's leadership and the department requested they reduce the rate. Aetna is moving forward with this unreasonable rate increase, which will cost small businesses a projected $23.5 million in excessive premium, based on the company's own projections.
California Department of Insurance Says Aetna Imposes Unreasonable Health Care Rate Increase on California Businesses for 2015
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