Insurance giant Anthem Blue Cross agreed to reduce two plannedpremium increases for 2018 after California regulators questionedthe company’s rationale for raising rates by as much as ithad initially proposed.

The scaled-back rate hikes, in the individual and small-employermarkets, will reduce premiums by $114 million, state officialssaid.

The California Department of Managed Health Care challengedAnthem’s estimates for future medical costs, in particular itsprediction of a 30 percent jump in pharmacy expenses for the individual market— nearly double the estimates of two other big insurers and out ofline with industry trends nationally.

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