According to state controllers, Health Insurer Aetna Inc. has pulled back its filing for rate hikes in California, after considerable numerical mistakes were discovered. Aetna, whose shares dropped over 2%, is the second leading health insurer, after WellPoint Inc., to pull out its rate filing application in the most heavily populated U.S. state, after the inaccuracies were indentified.
State rate requests have come under intense analysis throughout the country. On Tuesday, President Barack Obama cautioned insurers not to use the recently approved healthcare revamp, as a prospect to thrust huge rate rises on consumers.
According to the California Department of Insurance, Aetna's application would have swelled rates by an average of 19% on its 65,000 policyholders.
The Company said in a statement that during an in-house assessment, Aetna discovered errors, which it pointed to a "simple human mistake".
It said that it notified the California insurance department, the moment it learnt about the inaccuracy.
The U.S. health insurer said that it had not yet put the projected rate changes into operation and that there was no affect on its members with individual health schemes in California.
In April, WellPoint's Anthem Blue Cross division pulled its appeal to increase rates back by an average of 25% in California.