A nationally renowned expert on health insurance testified at a hearing of consumers that Blue Cross Blue Shield of Michigan used defective, inadequate methods to determine the rate hikes proposed at issue in a challenge of consumption.
James Geyer, former chief actuary for Aetna Inc., said BCBSM methods resulted in a significant overstatement of its losses on its health insurance policies purchased by individuals without employer-sponsored coverage, participation in these policies is more and more that employers Workplace decline in health insurance benefits.
BCBSM earlier this year requested a 24% increase on average for these various health insurance policies. Blue Cross has been granted 10% increase in interim rates, which took effect on June 1. Rising rates affect about 19000 people in 7 Blue Cross plans of individual health. Blue Cross said the rate hikes are necessary to offset losses in health matters, which totaled $ 52 million over 10 years.
If BCBSM had conducted a more precise analysis of the growth plans of the value of the insurer is breaking even or make $ 1.3 million, Geyer said, instead suffer as much as $ 13 million in losses lines of business in question.
James Geyer, former chief actuary for Aetna Inc., said BCBSM methods resulted in a significant overstatement of its losses on its health insurance policies purchased by individuals without employer-sponsored coverage, participation in these policies is more and more that employers Workplace decline in health insurance benefits.
BCBSM earlier this year requested a 24% increase on average for these various health insurance policies. Blue Cross has been granted 10% increase in interim rates, which took effect on June 1. Rising rates affect about 19000 people in 7 Blue Cross plans of individual health. Blue Cross said the rate hikes are necessary to offset losses in health matters, which totaled $ 52 million over 10 years.
If BCBSM had conducted a more precise analysis of the growth plans of the value of the insurer is breaking even or make $ 1.3 million, Geyer said, instead suffer as much as $ 13 million in losses lines of business in question.
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