Health insurance rate increases held in check for 2013

By Richard Asinof
Contributing Writer
Twitter: @RichardAsinof

PROVIDENCE – All three of Rhode Island’s health insurers filed rate increase requests for both small and large groups for 2013 well below their historical trend, according to analysis provided by the R.I. Office of the Health Insurance Commissioner.

The lower rate requests reflect R.I. Health Insurance Commissioner Christopher F. Koller’s “guidance” that commercial insurers submit a projected cost increase for medical trends for 2013 of 4 percent.

For small groups, Blue Cross & Blue Shield of Rhode Island filed for a net rate increase in 2013 of 2.3 percent, with a medical trend of 3.8 percent, including a reduction in prior period adjustments of 2.6 percent.

Tufts Health Plan of Rhode Island filed a net rate increase of 6 percent for 2013, with a medical trend of 4.6 percent and an administrative expense increase of 0.8 percent.

UnitedHealthcare of New England filed a net rate increase of 6.2 percent, with a medical trend of 10.4 percent, and a contribution to reserves of 1 percent.

United’s rate request included a reduction from prior period adjustments of 3.2 percent as well as a reduction in administrative expenses of 2 percent.

For large groups, Blue Cross filed a net rate increase for 2013 of 4.2 percent, with a medical trend of 3.1 percent. Tufts filed a net rate increase of 6 percent, with a medical trend of 4.6 percent, and United filed a rate increase of 10.5 percent, with a medical trend of 10.5 percent as well as a 1 percent contribution to reserves. This figure was offset by 3.7 percent reduction in administrative expenses.

The Office of the Health Insurance Commissioner said that it was in the process of reviewing the rate requests and would make a final decision in early July.