Blue Shield of California says it will send its rate increase requests out for independent actuarial rate review.
California Blue, San Francisco, will make refunds to policyholders if the actuary finds that its rates are unsound, the company says.
California Blue made the announcement in response to a move by Dave Jones, the new California insurance commissioner, to ask large California health insurers to wait at least 60 days after a rate increase takes effect before imposing a new increase. Jones reported 
that some health insurers in the state have raised their rates several times in the past year.
California Blue Chairman Bruce Bodaken says the company will have David Axene, an actuary who has reviewed rate filings for the California department in the past, look at its rate filings.
Axene will be free to talk to confer with state regulators, and his report will be made available to the public, Bodaken says. If Axene finds that any new rates are "excessive, unjustified, or unfairly discriminatory," California Blue will refund the difference, with interest, Bodaken says.
California Blue has been raising individual health rates at an average annual rate of 15% this year, but the increases for some enrollees have been much higher than the average, the company says.
"We regret that our members have received significant rate increases in recent months and want to be absolutely certain that the rates reflect our actual cost of providing medical care," Bodaken says in a statement.
California Blue is agreeing to a binding, independent rate review to establish confidence in its rate-setting process, Bodaken says.
Bodaken notes that the company expects to lose money in spite of increasing rates, and that the company's total costs for hospitals, physicians and prescription drugs have risen by an average of 15% annually for each of the past 3 years.
California Blue provides or administers health coverage for about 3.3 million California residents. It is a separate company from Blue Cross of California. Blue Cross of California is a unit of WellPoint Inc., Indianapolis (NYSE:WLP).
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