Michigan Judge Limits Rate Hikes For Blue Cross Policies

Blue Cross Blue Shield of Michigan would like to raise its rates for individual insurance policies, but an administrative law judge has ruled that the rate hike is not justified. According to the Detroit Free Press, Blue Cross would like to institute a 24 to 42 percent increase on all individual policies in order to make their rates "reflective of the medical costs of insurance." However, the judge believed that the $2.4 billion Blue Cross retains in its reserves is excessive for a company claiming non-profit status.

Although this judge's decision will help to prevent this proposed rate increase from occurring, there are more steps to the rate increase approval process. It is possible that Blue Cross's proposal will later be approved. However, consumer advocates consider this decision to be a victory.