Companies submit health insurance rate requests for 2016

(Updated 3:40 p.m.) PROVIDENCE – The four health insurance companies that do business in Rhode Island have submitted their 2016 insurance rate increase requests with the state Office of the Health Insurance Commissioner, but they have until June 1 to make additional changes.
In the individual market, requests range from Neighborhood Health Plan of Rhode Island’s 8.6 percent increase to a 17.9 percent increase from Blue Cross & Blue Shield of Rhode Island. UnitedHealthcare of New England Inc. is proposing an 11.1 percent increase.

Tufts Health Plan, which also does business in Rhode Island, does not offer individual plans here, according to the state agency.
The three other health insurance companies all stated in consumer disclosure forms that rising health care costs are driving the proposed rate increases.
Blue Cross & Blue Shield said the increase is expected to affect 25,000 members enrolled either directly through Blue Cross & Blue Shield, or HealthSource RI, the state’s health insurance exchange.
UnitedHealthCare said its increase will affect 800 members, while Neighborhood Health said the increase will affect approximately 17,000 members.
“This year we specifically requested that companies submit consumer disclosure forms so consumers and the press would have an explanation from the insurers themselves as to what is driving these rate increases,” Sarah Nguyen, principal policy associate for the Office of the Health Insurance Commissioner, said.
On the small group side, Tufts Health Plan was the only insurer to ask for a decrease for 2016 – an average of 2.5 percent for HMO plans and 2.9 percent for PPO plans. It said the decrease is being driven by plan design changes and changes to the federal small group size definition.

Neighborhood Health Plan is proposing a less than 1 percent increase, which is expected to impact approximately 1,000 small group members, new and currently enrolled, in 2016. Key drivers of the change, according to Neighborhood, are increases in mandatory state and federal taxes and fees, as well as increases in administrative and medical services costs.
The highest increases on the small side group side came from UnitedHealthcare at 13.5 percent for its HMO and PPO plans. The company said 13,000 lives are covered through these plans, and the increases are being driven by higher costs for medical services, as well as costs shifting from the public to private sector and the impact of new technology, requiring the use of more expensive services.
Blue Cross & Blue Shield said it is proposing a 4.7 percent increase for the small group market, again due to the cost of medical services.
Nguyen said the public comment on the proposed rate changes will open some time after the June 1 deadline for rate changes. A public input session also has been scheduled for June 22 from 5:30-7 p.m. at the Public Utilities Commission, 89 Jefferson Blvd., Warwick. She said rates will be approved at the end of July, and will go in effect Jan. 1.

Proposed individual market base rates for 2016:

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  • Blue Cross & Blue Shield of Rhode Island: $389.27.
  • Neighborhood Health Plan: $320.28.
  • UnitedHealthcare of New England Inc.: $331.80.

Proposed small group base rates for 2016:

  • Blue Cross & Blue Shield of Rhode Island: $385.56.
  • Neighborhood Health Plan: $315.97.
  • Tufts Health Plan HMO: $404.59.
  • Tufts Health Plan PPO: $409.85.
  • UnitedHealthcare of New England Inc.: $430.26.

The following rates were approved for 2015 by the state agency:
Individual

  • Blue Cross & Blue Shield of Rhode Island: $330.09, a 4.5 percent increase from 2014 ($341.68 requested).
  • Neighborhood Health Plan: $288.99, a 7.3 percent decrease from 2014 (requested amount was approved).
  • UnitedHealthcare of New England Inc.: $298.77 (information not available for 2014) (requested amount was approved).

Small employer

  • Blue Cross & Blue Shield of Rhode Island: $368.31, a 5.2 percent increase from 2014 ($369.77 requested).
  • Neighborhood Health Plan: $314.95, a 1.8 percent decrease from 2014 (requested amount was approved).
  • Tufts Health Plan HMO: $385.56, a 4.5 percent increase from 2014 (requested amount was approved).
  • Tufts Health Plan PPO: $388.75, a 4.7 percent increase from 2014 (requested amount was approved).
  • UnitedHealthcare of New England Inc. HMO: $377.54, a 9.6 percent increase from 2014. ($400.48 requested).
  • UnitedHealthcare of New England Inc. PPO: $381.76, a 9.6 percent increase from 2014. ($405.03 requested).

* Base rates represent the monthly average rate for a standard plan for a 21-year-old.

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