Blue Shield to rebate $50M to customers
Blue Shield of California is once again following through on its promise to limit annual profits and rebate its customers with excess funds.
On Tuesday, the San Francisco-based insurer said it will refund $50 million to its members by year's end as part of its pledge to limit net income to 2 percent of revenue, reported the Los Angeles Times.
Blue Shield already has rebated its members more than $470 million for 2010 and 2011, and the $50 million addition means it has now given back a total of $520 million, the San Francisco Business Times reported.
"As a not-for-profit, we are committed to expanding access to high-quality health care at an affordable price," Blue Shield CEO Bruce Bodaken said. "This pledge continues to demonstrate that we put affordability before profit."
Each member's credit will depend on the monthly dues or premiums, with the average member receiving about $25 to $75. Blue Shield's fully-insured members will receive a 9 percent credit in their bills against their December dues or premiums, and its risk-sharing members will get a 3 percent credit, according to the Fresno Business Journal.
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