Friday, August 14, 2009

In Michigan., Blue Cross raising individual, group rates 22 pct

And this is in a state that ranks second with the worst unemployment rate and foreclosed homes in this country.

Insurer originally sought 56 percent rate hike, but regulators refused

Michigan insurance regulators have approved a 22 percent increase for group and individual Blue Cross Blue Shield health policies in the state, according to reports published Thursday.

“Blue Cross officials have said they need rate increases to help cover $133 million in financial losses in 2008 on its individual health insurance policies,” reported Crain’s Detroit Business.

Blue Cross originally sought to raise individual rates by 56 percent and group rates by 41 percent. Its proposed rate increases were initially rejected by the state’s Office of Financial and Insurance Regulation, which negotiated the still-significant hikes.

The new rates, set to take effect October 1, will affect 163,000 policies.

Read on.

2 comments:

Anonymous said...

They probably have a lot less customers on insurance, and they very few that have a job, and with insurance is down. And then there are less that can afford their own policy, so they are going to make their money.
Insurance works best when you have many insured paying in, here they have to make up for the lack of, or decreased number of insured paying in. But the few remaining will pay, and pay so the insurance companies can still make theirs.

Anonymous said...

Sadly if you want to get out of Michigan and you own a home, you can't. Most people are over their heads with the home prices falling so much in that state, even if you had a nice 20%+ down, and owned your home for a few years, you could easily be over your head on that home (= owe more(mortgage) than you home is worth)