Health Insurance Hikes: Candidates Speak Out
Thursday, July 08, 2010
Candidates for state office from across the political spectrum were uniformly outraged yesterday over health insurance rate hikes—but they differed on how they would fix the problem if they were elected.
Candidates pounded away at the decision, with many denouncing the hikes as “unaffordable and unacceptable.” Most blamed insurance companies—and not the health insurance commissioner who approved the increases.
Democratic candidate for governor Frank Caprio accused Blue Cross and Blue Shield of passing on their inefficiencies to small businesses.
GET THE LATEST BREAKING NEWS HERE -- SIGN UP FOR GOLOCAL FREE DAILY EBLAST“Blue Cross has increased its operating expenses in a time when all Rhode Islanders and Rhode Island businesses are cutting back and living within their means,” said Nick Hemond, a spokesman for Caprio. “It is time we forced Blue Cross to get their own house in order before allowing them to reach into the pockets of small businesses.”
Insurance rates will increase by 8.4 percent to 12.3 percent for the three major health plans in Rhode Island—Blue Cross and Blue Shield, United Health Care, and Tufts Health Plan. The hikes were approved yesterday by health insurance commissioner Chris Koller, who turned down requests for even higher increases in the rates.
Besides hurting Rhode Island families, several candidates warned that the rate increases would slow the state’s climb out of the recession.
“Many large and small businesses that are still struggling to recover from the recession are faced with choosing between hiring new workers and keeping health insurance coverage for their existing employees,” said Lieutenant Governor Elizabeth Roberts (pictured above left), who is running for re-election. “Our state simply cannot afford to have employers and employees in this economic squeeze play.”
What Are They Going to Do About It?
The three Democratic candidates for Attorney General were especially outspoken on the hikes. The final decision on insurance rates rests with the state health insurance commissioner. But, by law, the Attorney General acts as an advocate for ratepayers and can testify against health insurance companies at hearings, according to Mike Healey, a spokesman for Attorney General Patrick Lynch.
Democratic candidate Steve Archambault urged the health insurance commissioner to re-examine the reasons the companies called for rate increases and he called for a top-to-bottom review of all expenses—included salaries of top executives at the companies.
Joe Fernandez (pictured right) promised that he would not be a “rubber stamp” for any rate hike.“My highest priority will be acting as an advocate for ratepayers and ensuring that any request for a rate hike is fully scrutinized to ensure that consumers are being treated fairly and justly,” Fernandez said.
A third Democratic candidate for AG, Peter Kilmartin, has a history of holding insurance companies accountable and would be a “watchdog” over companies that were “unfairly jacking up” the rates, according to spokesman Brett Broesder. “Peter will proactively engage health insurers, providers, care givers and small businesses to help resolve the issues that lead to rising health insurance rates,” Broesder said.
Lynch, who is also a Democratic candidate for governor, opposed all the rate hikes, according to Healey.
Candidates for Governor Weigh In
Republican candidate for governor John Robitaille said the solution to lower health insurance was tort reform. “Malpractice insurance costs are skyrocketing and this must be addressed,” Robitaille said. “Because of the proliferation of law suits doctors are practicing defensive medicine by ordering unnecessary and expensive tests.”
He also said bringing more health insurance companies into Rhode Island would give more choices to small businesses and individuals.
The Caprio campaign said insurance companies should not be able to raise rates until they have lowered their operating expenses. As governor, he would press for reform through the office of the health insurance commissioner.
The campaign for independent Lincoln Chafee (pictured left), meanwhile, did not issue any specific solutions, instead calling for the overall reform of health care in Rhode Island. “The main objective is to have rates that are reasonable, affordable, and predictable,” said campaign manager J.R. Pagliarini. “We need a health care system in Rhode Island that is sustainable and fair to both payers and providers.”
Roberts, meanwhile, praised the state health insurance commissioner for imposing strict conditions on new contracts between hospitals and health insurance companies. Roberts has also formed a task force to deal with how to implement the new national health care law. She said that work would result in lower health care costs.
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