In Brief: Jones Says Aetna\'s Rate Increase Is Unreasonable; CMA Installs Inland Empire Physician As President

Jones Says Aetna Rate Increase Is Unreasonable

California Insurance Commissioner Dave Jones declared last week that a rate increase filed by Aetna for its small business group was unreasonable.

Aetna plans to increase the premiums for the book of business an average of 27.4%.

According to Jones, the California Department of Insurance’s (CDI) review of the filing concluded that the increase was not based on Aetna’s claims experience but on “an unreasonable and excessive pricing trend and other unreasonable assumptions.”

In a statement, Jones declared that "small businesses are the lifeblood of California's economy. Small businesses simply cannot afford unwarranted and unreasonable increases in health insurance costs nor can their employees." 

Aetna went forward with the rate increase anyway, according to the CDI. Jones’ office said it would cost policyholders about $5.5 million in excessive premium charges.

Jones does not have the legal authority to roll back any rate increases his agency deems unreasonable, although some carriers have made concessions on rates after pressure from his agency and the state’s other health insurance regulator, the Department of Managed Health Care.

A ballot initiative that would have deemed rollback authority was defeated by voters last year.

CMA Installs Inland Empire Physician As New President

The California Medical Association (CMA) has installed Steven Larson, M.D., as its newest president.

Larson is an infectious diseases specialist who practices in the Inland Empire. He is also chief executive officer of the Riverside Medical Clinic. And he serves on the faculty at the UC Riverside School of Medicine, specializing in teaching biomedical sciences. He earned a medical degree from the University of Wisconsin and a master’s degree in public health from Loma Linda University.

“It is an enormous honor to serve the 40,000 plus members of CMA as their president,” Larson said. “As we face some of the most rapidly changing times in healthcare that this country has ever seen, I look forward to working with the county medical societies and my colleagues across the state in unifying together as one voice to tackle whatever obstacles lie ahead. California will be faced with many exciting changes to health care in the coming year, including a ballot measure to increase the state’s tobacco tax, which will help to save lives and reduce teen smoking,” said Dr. Larson. “With a vested interest in public health and a commitment to serve my colleagues and my patients, I’m looking forward to what the year will bring.”

Larson will serve a one-year term.

“I have tremendous respect for Dr. Larson and his ability to represent the diverse physicians of California and the patients for whom we care,” said Luther Cobb, M.D., the CMA’s immediate past president. “I have worked closely with him over the years and expect great things under his capable leadership."