NEW: Blue Cross Raises Rates on Businesses
Wednesday, May 11, 2011
Blue Cross Blue Shield of Rhode Island announced today it had raises its average rate for small and large group insurance by 10.5 percent.
The change would affect businesses effective January 2012.
The health insurance company has filed to raise its rates because of the approximately 6 percent increase expected in its members claims for next year, 2 percent increase in administrative costs, and around 2.5 percent increase in the costs of state taxes and assessments.
GET THE LATEST BREAKING NEWS HERE -- SIGN UP FOR GOLOCAL FREE DAILY EBLASTLt. Gov. Elizabeth Roberts said the rate increase would have a crippling effect on businesses.
“A double digit increase in group insurance rates will cripple the business owner in Rhode Island who can't make ends meet in the face of our state's challenging economic recovery," said Roberts, who is also Chair of the RI Healthcare Reform Commission.
She added: "One of the primary goals of the health reform law that we are working to implement now in Rhode Island is to transform delivery and payment of healthcare to make it more affordable and sustainable--not less. Insurers and providers must find efficiencies and savings in the system, not pass along increased costs to our businesses and families who are left to deal with inflation in the healthcare system.”
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