by Christopher Freeburn | October 31, 2012 11:25 am
People often complain about the high costs of health insurance, and the profits that insurance companies rake in. But customers of Blue Shield of California will receive credits posted to their December bills as the company works to limit its profits.
The insurance company says the credits — $25 for individuals, $40 for employers and up to $75 for families — are part of an effort to return $50 million in excess profits to its customers, the Los Angeles Times notes.
Last year, Blue Shield of California pledged to restrict its annual profit to just 2% of earnings, in the wake of a public outcry over steep premium increases. The company promised to return any profits over the 2% cap as credits to customers.
So far, the insurer has issued $470 million in customer credits accounting for excess profits since 2010. It also provided rebates of $11 million in compliance with new federal regulations.
For 2011, Blue Shield generated a profit of $78 million on revenue of $9.5 billion.
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