Thursday, October 13, 2011

Blue Shield of California to return money to customers

Health insurer Blue Shield of California, which last summer said it would return $167 million in excess profit to nearly 2 million policyholders, now says it will give them an additional $283 million in December. Policyholders are seeing the first round of money this month through credits on their insurance bills. The next giveback, to be announced by the insurer Thursday, will cut most of the bills in December by more than half. Individual policyholders will see their December premiums reduced by an average $135. A family of four will get a $420 average cut, but the reductions could be as much as $700. Chief Executive Bruce Bodaken said the San Francisco nonprofit is trying to help policyholders cope with rising healthcare costs by making good on a pledge to return money when its net income exceeds 2% of its revenue.

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