Blue Shield of California policyholders get money back

Some policyholders and some money. The health insurer is giving back $167 million, which covers a 30 percent credit on one monthly bill this year - but only for those with individual plans. For a family of four, that averages $250. More money is expected to be returned in future years, It's all part of a PR campaign being engineered by CEO Bruce Bodaken and comes after months of criticism for Blue Shield jacking up rates. From the LAT:

Bodaken called the company's "2% pledge" the first of its kind in the country. He said that in addition to the $167 million going back to customers this year, Blue Shield will give another $10 million to doctors and hospitals that coordinate care through so-called accountable care organizations. Another $3 million will go to the Blue Shield of California Foundation to support safety net programs.

From his opinion piece in the SF Chronicle:

We will cap our net income at 2 percent of revenue. If at the end of any year our net income is more than 2 percent because medical costs were lower or investment income was higher than we had projected, we'll return that amount to our members and the community. This is a long-term commitment and, we believe, the first of its kind in the country. We are committed to the 2 percent pledge so long as our board of directors determines that Blue Shield remains financially solvent, with sufficient funds to make the investments needed to stay competitive.