SACRAMENTO  (AP) — California's insurance watchdog says Anthem Blue Cross has agreed to reduce its rate increase for 630,000 policyholders.

Insurance Commissioner Dave Jones announced Thursday that Anthem has voluntarily agreed to reduce its premium increase for the individual market after his department conducted a review.

Jones estimates the move will save policyholders $54 million.

The insurer had proposed an average increase of 17.9 percent, but is now lowering that to 13.8 percent. The rate increase was effective Feb. 1.

Darrel Ng, a spokesman for Anthem, says the agreement reflects the fact that the health insurance industry continues to face rising health care costs.