Calculation mistakes lead Aetna to withdraw rate-hike plans

[Newsjock]

Source: Sacramento Bee

Aetna today withdrew plans to raise premiums on 65,000 customers who buy health insurance on their own, becoming the second insurer to do so in as many months because of "substantial mathematical errors" in its rate calculations.

The errors were discovered by state actuaries and by Aetna itself, which reported the errors to state regulators, the Department of Insurance said.

The company had been expected to raise rates on its California individual policy customers by an average of 19 percent.

"First, we found major problems with the Anthem Blue Cross rate filing," Insurance Commissioner Steve Poizner said today. "Now, additional scrutiny has revealed that Aetna's filing has significant mathematical errors."

Read more: http://www.sacbee.com/2010/06/24/2847075/calculation-mistakes-lead-aetna.html

[PSPS]

1. Yeah, that was it. "Mathematical errors." Right.

[rzemanfl]

2. Just like whenever I am overcharged for something and catch it

it is a computer error.

[Curmudgeoness]

3. "Errors discovered by state actuaries AND Aetna"

So which was it? Sounds to me like the state was scrutinizing the new rates and pointed out to Aetna that there was a problem. Now Aetna will crow about how they detected the error. Wonder who was called on the carpet about gouging, which seems to be the industry standard right now.