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AB 52 a move toward reason

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Beyond the front-page news stories of Anthony Weiner’s troubles and Sarah Palin’s trip and woeful knowledge of American history, there was an article which got my attention and I hope yours. Blue Shield has decided to limit its annual income to 2 percent of revenue and they plan to return $180 million to their customers, retroactive to 2010. In 2010, Blue Shield earned $315 million in profit and $10 billion in revenue. Their CEO, Bruce Bodaken, earned $4.6 million and 10 top executives earned a combined salary of $14 million last year. Now, I don’t believe they are doing this out of the goodness of their hearts. We have to thank Assemblyman Mike Feuer who wrote Assembly Bill 52, and our Insurance Commissioner Dave Jones. These two men took Blue Shield to task for their excessive profits. If you remember, Blue Shield had wanted to raise premiums again, their third such increase since October 2010. This while they have $3.5 billion in cash reserves. I’m all for capitalism but these profits and salaries are obscene. Rosalie Wohlfromm, Auburn