PROVIDENCE – R.I. Attorney General Peter F. Neronha has filed objections with the R.I. Office of the Health Insurance Commissioner related to rate-increase requests in the individual health insurance market from Blue Cross & Blue Shield of Rhode Island and Neighborhood Health Plan of Rhode Island for 2021.
This year, BCBSRI filed for a 5.7% increase and NHRPI filed for a 5.8% increase in their individual-market plans. The two insurance companies are the only two in the individual market in Rhode Island.
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OHIC released all 2021 health insurance rate requests in July.
The R.I. Office of the Health Insurance Commissioner is expected to issue decisions on rate change requests in mid-August.
Neronha, who reviewed the rate requests and actuarial reports with the aid of Oliver Wyman Actuarial Consulting, said there is not an actuarial basis for an increase of more than 1.2% for BCBSRI and 0.6% for NHPRI, even prior to considering the affordability of an increase in the current economic climate.
“During the COVID-19 pandemic and accompanying challenging economic conditions, I believe that no health insurance rate increase should be granted,” said Neronha. “At this time, higher rates are not affordable. If allowed, these increases would affect over 45,000 people in Rhode Island, a number that will likely rise with increasing unemployment rates. Additionally, any increase will fall particularly hard on minority communities who have experienced long-standing health disparities and obstacles to care, as well as markedly high job loss, during the pandemic.”
Neronha’s office also said that it had determined in its review that both companies have sufficient monetary reserves.
