Aetna rate hike unreasonable, California regulator says

LOS ANGELES

Insurance Commissioner Dave Jones said Thursday state actuaries found that Aetna's projections about medical cost increases weren't supported by actual claims.

Jones said Aetna made a 27.7 percent profit in 2011, paying nearly $2 billion in dividends to its parent company. But he said he doesn't have the authority to reject the 1.8 percent average quarterly rate increase.

The Associated Press contributed to this report.

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