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Running Head: CALIFORNIA
5-2 Journal: Insurance Companies and Rate Increases
HRM 630
February 6,2022
SNHU
CALIFORNIA 2
In California state there exist a large number of insurance companies that adopt the
rate by taking into account the predetermined recommended threshold. However, there also
exist other insurance companies that increase their rates than the threshold that has been
recommended for them. Insurance companies are expected to generally spend 80 % of the
healthcare premiums on care as well as quality improvement aspects. In case of large group
insurance plans, the amount is typically 85 %. For example, in the case of the Blue Shield of
CA Life and Health Ins Co, its Medical Loss Ratio (MLR) for the year 2020 was 85.6 %
