Updated 9:12 a.m.
PROVIDENCE – Proposed rates for large employer group heath insurance have, in some cases, come in at more than double the 2017 requests, according to recent postings on the R.I. Office of the Health Insurance Commissioner’s website.
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The OHIC is currently considering the rate requests but says that it hopes to complete its review by Aug. 1, following public input sessions. Proposed rate filings for the individual and small group markets are due June 16, after which they will be made public as well and reviewed with public comment.
Blue Cross & Blue Shield of Rhode Island has proposed an 11.9 percent rate increase for 2018. The company requested an 8.9 percent increase in 2017, but the OHIC approved a 7 percent bump in rates.
In a statement, a representative of Blue Cross said that “2018 rate filing for the large group market reflects our detailed analysis of medical trends (both utilization and cost). The requested rate factors will result in an overall average rate increase in the large group market of 11.9%. The increase includes a required Affordable Care Act (ACA) fee equal to 2.2%. This fee was temporarily suspended by law in 2017.
UnitedHealthcare of New England proposed a 10.3 percent increase for 2018, after requesting a 5.3 percent increase last year. The final approved increase for 2017 was 3.6 percent.
Tufts Health Plan requested increases for its HMO and PPO options. Tufts Health Plan HMO requested a 9.8 percent rate increase for 2018, after asking for and receiving a 4.8 percent rate increase a year ago. Tufts Health Plan PPO proposed a 10.4 percent increase for 2018 rates. Its 2017 rate request for the Tufts PPO was 4.3 percent, and it was approved by the OHIC as well.
A meeting will be held to solicit comment about the proposed rate hikes at a to-be-determined date in July, according to the commissioner’s office.
A representative for UnitedHealth said of the increases that, “Our requested rates reflect the underlying costs of providing care, including utilization of heath care services and the cost of that medical care, such as physician, hospital, pharmaceutical and diagnostic costs.”
Tufts Health Plan declined to comment on why the proposed rate hikes were considerably higher for 2018 insurance.
A representative from OHIC said details of the proposals will not be released until after the Small Group Market and Individual ratings are released on June 16.
Chris Bergenheim is the PBN web editor.
