By Douglas Holtz-Eakin
The young drop coverage to avoid higher premiums
One of California's biggest health insurers will cap its earnings and credit some policyholders if it exceeds the limit as part of an emphasis on policy affordability over company profits.
Blue Shield of California said Wednesday it was withdrawing its plan to increase health insurance rates for individual policyholders in what would have been the third such rate hike since October.
Bodaken said Blue Shield will remain committed to the cap as long as it stays financially solvent and can make investments to remain competitive.
Bodaken said the cap has nothing to do with their rate increases or a bill pending in the California state legislature that would give regulators the power to reject rate hikes deemed excessive.
