Pennsylvania authorities have rejected proposed nongroup premium increases for four Blue Cross and Blue Shield plans in the state, noting that the plans did not adequately explain how they would apply surpluses they have built up.
The affected plans, according to the Pennsylvania Insurance Department, are Highmark Blue Cross Blue Shield, Pittsburgh; Independence Blue Cross of Philadelphia; Capital Blue Cross, Harrisburg, Penn.; and Blue Cross of Northeastern Pennsylvania, Wilkes-Barre, Pa.
The action affects more than 300,000 people in more than two dozen individual nongroup plans, according to news reports.
"The filings failed to meet the requirements of our insurance laws primarily because they did not adequately show how surplus is being used to subsidize these individual filings," the department says in a release. "Nor did they show whether that surplus is a sufficient subsidy for the subscribers covered under these products."