Friday, June 10, 2011

Blue Shield Of California Sets Profit Cap Other Insurers May Not Imitate - Kaiser Health News

"Blue Shield of California’s surprising announcement that it will cap profits at 2 percent and issue millions in policyholder refunds sparked hopes that other health insurers would follow suit, but many experts said yesterday that was unlikely.

The company, which made the announcement Tuesday, is better positioned than most to make that move. For one thing, as a nonprofit, it has more leeway to cap profits than its for-profit cousins who have to meet Wall Street earnings targets, says Peter Kongstvedt, a managed care consultant in McLean, Va."

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1 comment:

  1. My husband Doug who works for Aetna says this has great potential to be a game changer. fingers crossed.

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