Raimondo Admin Approves Health Insurance Rate Increases - Some Nearly 10%, Neronha Criticizes
Saturday, August 29, 2020
Health insurance premium rates for 2021 have been approved by Rhode Island’s Office of the Health Insurance Commissioner (OHIC) in a blow to consumers and Rhode Island businesses during the pandemic and recession.
Some of the rate increases are nearly 10%, all at a time when health insurance companies have been piling up revenues with consumers using fewer services due to the pandemic.
And a consultant hired by the Rhode Island Attorney General found that in the case of Blue Cross Blue Shield of RI rates should be cut and not increased.
GET THE LATEST BREAKING NEWS HERE -- SIGN UP FOR GOLOCAL FREE DAILY EBLAST"In total, the adjustments to the rates that are recommended as shown in Exhibit AG-4 reduce Blue Cross’s EHB rate from $432.54 PMPM to $414.44 PMPM reducing the projected rates by 4.2%. The Attorney General's recommended rates result in a weighted average increase of 1.2% compared on an apples-to-apples basis to Blue Cross's requested increase of 5.7%. The lower recommended weighted average rate increase would result in premium savings of approximately $5.0 Million," found the consultant - READ THE REPORT HERE.
OHIC Boasts "Savings"
OHIC claims that the rate increases saved consumer money because the rate increase was not as large as requested by the insurance companies.
“Overall, this year, OHIC has saved Rhode Islanders $12,870,000 by cutting the insurers’ proposed 2021 rate increases,” said OHIC’s press release.
Attorney General Peter Neronha was quick to criticize the increases. “I am disappointed and very concerned by the Office of Health Commissioner’s approval today of health insurance rate increases in the individual market for Blue Cross Blue Shield of Rhode Island and Neighborhood Health Plan of Rhode Island. We consider the rate increases approved by the Office of Health Insurance Commissioner for Blue Cross and Neighborhood to be unnecessary and ill-advised at this time."
“Consumer protection remains at the forefront of all of OHIC’s work. Affordable access to health care services is more important now than ever before.” said Health Insurance Commissioner Marie Ganim. “We know that Rhode Islanders are facing increasingly difficult hardships due to the spread of COVID-19, and our office is working hard to make accessing the health care services they need easier, and more affordable.”
Neronha said the rate increases that were not in keeping with the standards. “While BCBSRI and NHPRI once again sought increases that are larger than what OHIC was willing to approve, the approved increases are significantly larger than the increases justified in this Office’s actuarial reports,” said Neronha
“According to experts retained by this Office, both BCBSRI and NHPRI have reserves that are more than sufficient to meet minimum state and federal guidelines. Insurers may claim they got less than they asked for but their record is clear – nearly every year they request an increase that regulators find exceeds what is reasonable and necessary. Asking for the sun and getting the moon when the moon is really what you want anyway is a win, plain and simple,” Neronha added.
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