iHealthInusranceCalifornia Chief Sees Brake on Premium Hikes

The CEO of ihealthinsurancecalifornia believes that with a million dollar funding that California has received, the residents do not have the pay for unnecessary hikes and hidden costs in premiums

[USPRwire, Wed Aug 25 2010] iHealthinsurancecalifornia, Inc. (www.ihealthinsurancecalifornia.com) Californian residents who earlier had to pay higher premiums to subsidize care for the uninsured, will no longer have to worry about paying the hidden taxes. The CEO of ihealthinsurancecalifornia, inc, John Ray, believes that the funding of a million dollars that the California has received will go towards rate reviews and data collection activities.

Governor Arnold Schwarzenegger had previously submitted a proposal to Health and Human Services Secretary Kathleen Sebelius to enhance the state’s medical insurance rate review and data collection activities, and report rate increase patterns to the federal government.

John Ray, explaining the relation between increasing premium rates and the hidden costs, said, “The hidden tax constitutes 17 % of health care premiums in California. The New America Foundation found that the hidden tax on health care premiums equals $455 per individual and $1,186 per family annually. Health care providers who treat the uninsured are not fully reimbursed for the cost of care, forcing them to shift costs. This has resulted in an approximate 10% increase in premiums for all Californians.

The funding will provide better consumer protection by making it mandatory for all premiums filings are reviewed and certified by an independent actuary. This will ensure that premiums are accurately calculated and costs are made transparent. All proposed increases in premium rates are to be posted on the department’s as well as the insurer’s website.

Though the Governor is serious about a keeping a check on the incessant hike in premium rates, he has specifically ruled out seeking prior approval authority.

However, a Santa-Monica based advocacy group, Consumer Watchdog, is sceptical if the funding will do any good to the residents of California. It had urged the administration to reject California’s grant application. It has reasoned that the grant would "prevent, not develop, any effective state regulation of health insurance rates."

The state nonetheless received its grant of a million dollars which it will use to stream collection of data on proposed rate hikes.

About iHealthinsurancecalifornia:
iHealthinsurancecalifornia, Inc., is geared to provide health insurance plans and policies to the residents of California offering the most suitable advice. Using the online platform provided by ihealthinsurancecalifornia, individuals, families and small businesses can search, compare and purchase suitable health insurance from leading providers in California.