Here Davey Jones is, fresh on the job, only three days into his new office less than two weeks ago, and he asks Blue Shield for a mere 60 day delay on their new rate increases in order to give him time to review the numbers.  Some of Blue Shield’s rate increases are coming on March 1st as high as 59%, and this is the third rate increase they have submitted since last October.   So Davey’s trying to hit the ground running and continue the excellent work just done by our termed out Insurance Commissioner Steve Poizner, to get California profitable again plus keep individual Californian’s insured for personal medical insurance. 

Poizner fought hard for the Workers’ Compensation system, and wrote a commendable letter to new governor Jerry Brown just a few days before leaving office, advising Brown to keep up the fight against insurance fraud in Workers’ Compensation and to continue to strive to make the Work Comp system profitable.

But the issue of personal medical insurance and the spiraling, out of control, costs to individuals in California is breaking so many people and forcing them into uninsured status that the crisis for personal insurance is just as egregious as the crisis is in Workers’ Comp.

 If Blue Shield, along with Aetna, PacificCare, and Anthem Blue Cross would cooperate with Jones’ reasonable request (and I really feel he’s made a reasonable request), and just give him 60 short days, Davey wouldn’t have to be so ambitious to push for legislation to give the Insurance Commissioner the authority to block excessive premium rate increases. 

Cooperate Blue Shield and gang, and you’ll do yourselves more good in the long run and keep your freedom by cooling Davey’s jets to want to legislate more power for the office of Insurance Commissioner.  Here’s what he expressed in a very recent Press Release:

“The Blue Shield rate increase underscores the need for the Legislature to give the Insurance Commissioner the authority to reject excessive premium increases.  I do not have that authority now.  I have been fighting to get that authority.  As a State Assembly member I authored bills to give the Insurance Commissioner the authority to reject excessive premium increases.  I look forward to working with Assembly member Feuer who has re-introduced this legislation.” 

We have a huge public problem here with escalating personal medical insurance premiums.  What causes the need for more legislation?  Self-interest on the parts of individuals and companies who won’t bend in a crisis to cooperate with the problem as a whole, or else narcissistic self-aggrandizers who exploit a loop hole  (such as fraudsters do).  Thus, by not cooperating with a reasonable request, they provoke lawmakers to seek more power for the government offices.

Certainly it is a big concern that Blue Shield lost 20 million dollars on 2010 individual policies; and it’s an even greater concern that Blue Shield Chief Executive Bruce Bodaken asserts that his company now expects to lose another $30 million this year. 

This crisis is so huge that everybody’s hemorrhaging on both sides. 

But think of this politically, Blue Shield.  If you would only wait another 60 days, you are showing cooperation and a good will effort towards the newly in office Insurance Commissioner.  He’s brand new on the job and he’s only asking for two months.

I feel Davey Jones has made a reasonable request to Blue Shield, is deeply concerned about their losses, but also has a heart-felt concern for the people and families in California who are overwhelmingly burdened under the loss of jobs and wages so much so, that they can ill afford an increase in their personal medical insurance premiums.

Some day, historians will finally call this Recession a Depression.  I prophecy…

Reader opinions are encouraged.  Do you think Blue Shield should accommodate Jones and wait the 60 days he has requested before implementing their rate increases?  Write to Lonce LaMon at lonce@adjustercom.com