Insurer to credit customers $50 million

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SAN FRANCISCO, Oct. 30 (UPI) -- Blue Shield of California said Tuesday it would honor its pledge of limiting profits and return $50 million to customers by Jan. 1.

In 2011, the company said it would provide credit for its customers if its income was higher than 2 percent of its revenue.

The Los Angeles Times reported the not-for-profit company has already paid out $470 million in rebates based on their 2010 and 2011 fiscal years.

"This pledge continues to demonstrate that we put affordability before profit," Chairman and Chief Executive Officer Bruce Bodaken said.

Individual customers would receive an average of $25, while credit for a family of four would average $75. An employer's credit would average $40 per employee, the Times said.

The company also issued rebates of nearly $11 million to comply with the new federal law that mandates a percentage of premiums that need to be returned to customers either directly or through coverage.

In 2011, the company had revenues of $9.53 billion with income of $78 million.

As of the first quarter of 2012, the company also had $3.77 billion in reserves.