Possible Blue Cross Blue Shield rate increases under review

Kelcy Dolan
Posted 7/9/15

Blue Cross and Blue Shield of Rhode Island (BCBSRI) customers could see some serious increases in their premium in 2016 if the Office of the Health Insurance Commissioner (OHIC) grants Rhode …

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Possible Blue Cross Blue Shield rate increases under review

Posted

Blue Cross and Blue Shield of Rhode Island (BCBSRI) customers could see some serious increases in their premium in 2016 if the Office of the Health Insurance Commissioner (OHIC) grants Rhode Island’s largest insurer a rate increase.

As originally requested, individual and family plan rates could increase by 18 percent next year, impacting more than 25,000 BCBSRI customers.

Stacy Paterno, Assistant Vice President of Public Affairs for BCBSRI, wrote in an email that those estimates have dropped.

Despite the decrease in projections, individuals and families could still face a 14.2 percent increase. Businesses can expect a 4.7 to 7.3 percent increase in premiums depending on their size.

On Tuesday and Wednesday public hearings were held at the Public Utilities Commission where BCBSRI representatives supplied testimony to the need and purpose of the rate increases. They are subject to questioning from OHIC representatives and other experts. At both hearings the public was also allowed to share testimony.

Julia Chilicki-Beasley from Charleston was the only individual to testify in Wednesday morning’s meeting. As a small business owner with a family of five, she said she was “alarmed” with such steep increases and would seek other insurance providers if the higher rates were implemented. She said the hikes were “unreasonable” for families who already have their deductible and co-pays. She couldn’t understand how BCBSRI expected to keep their customers with such “a poor business plan.” She said if she were to approach any of her customers from Beasley Woodworks and announce a 15 percent increase in the cost she “would lose customers cold.”

In a consumer disclosure from BCBSRI, published on OHIC’s website, the increases are attributed to two things. One reason for the increases is the general increase in medical costs, especially from prescription drugs and newer drug treatments. Also, BCBSRI rates are affected because of rising costs from the Affordable Care Act and the “phase out of the federal Reinsurance Program. This program, which began under the ACA, initially paid for a percentage of claims. The program will be ending in December of 2016 and is thus highly reduced throughout its final year.

Similarly, the state implemented a fee to help fund HealthSourceRI that has to be accounted for.

Chilicki-Beasley said, “I have a hard time believing this is a good business plan. I doubt it would cover your deficits anyway.”

She assured she wasn’t looking for a “handout” but expected at least a “sound business plan” from her insurer that prioritized customers.

Chief Medical Officer for BCBSRI Dr. Gus Mannocchia, who testified Wednesday, argued and exampled cases of the insurance company working to improve the experience of their customers, such as waving readmission costs to their customers within 10 days of a visit and encouraging hospitals to have a more thorough discharge policy that could decrease readmissions, although he did add that “results have been less than optimal and readmission rates are high in Rhode Island.”

Paterno wrote that BCBSRI is “committed” to working with their customer community towards “high quality, affordable healthcare services.”

Comments

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  • Justanidiot

    Ain't Obamacare grand.

    Saturday, July 11, 2015 Report this

  • patientman

    How much does the top brass at BCBS earn? Compensation for the top brass of government regulated utilities and health care providers should be controlled.

    Tuesday, July 14, 2015 Report this

  • falina

    Every single year in memory, they have asked for outrageous increases. enough is enough. Cut from the top.

    Tuesday, July 14, 2015 Report this