PROVIDENCE – Once again, Attorney General Peter F. Neronha is calling health insurers out on their proposed rate hikes for 2025.
“We have a system that is broken,” Neronha said in a public comment letter submitted to the R.I. Office of Health Insurance Commissioner Aug. 8 urging the agency to reject the requested increases. “History has shown that significant rate increases year after year have not translated into improved access to and quality of care. Insurers get what they need, while consumers, providers, and our healthcare system continue to suffer.”
Neronha’s comments come as OHIC is requesting public comments in response to insurers’ requests for rate increases in the individual, small and large group markets. In June, several local health insurers requested commercial health insurance rate increases for 2025 ranging from 2.5% to 22.7% and affecting more than 171,000 Rhode Islanders.
Neronha's submitted the comment as part of his office's role under state law to "represent, protect and advocate for Rhode Island consumers." Also, Neronha sent the comment as the State's Health Care Advocate, whose role is to determine whether proposed rate increases are justified in the health care and economic environment.
Days before sending his comments to OHIC, Neronha released a statement urging the agency to reject Blue Cross & Blue Shield of Rhode Island’s proposed 14.3% individual market increase, deeming it “staggering and unfair.”
Neronha spokesman, Timothy F. Rondeau, told PBN Blue Cross’ proposed rate increase triggered review by the attorney general because it was more than 10% and was in the individual market. Small and large group markets don’t have the same 10% review trigger and the only other individual market rate increase was Neighborhood Health Plan’s proposal of 5.6%.
Rich Salit, Blue Cross spokesperson, previously told PBN the insurer’s proposed rate hikes “reflect ongoing increases in the cost of health care driven by soaring prescription drugs costs and a widely reported nationwide surge in the utilization of medical services post-pandemic.”
In his most recent letter to OHIC, Neronha called for reform of the health care system.
He noted Rhode Islanders struggle to find a place to receive health care and the state has not been able to maintain an adequate workforce. On top of this, Rhode Island’s reimbursement rates are lower than neighboring states.
Despite repeatedly increasing insurance rates, prices paid by employer sponsored health plans were lower in Rhode Island than both Massachusetts and Connecticut, he said.
But Rhode Island is not alone, as the state’s challenges reflect what’s happening across the country.
“How health care is paid for, provided, and regulated in this country has resulted in an expensive system that is incapable of meeting demand or providing quality care to those in need,” Neronha said. “Not only is our high level of spend failing to translate into health benefits for the American people, but it is also placing an unsustainable economic burden on individuals and families … This is as unsustainable as it is unacceptable.”
Plus, there is no way for OHIC to ensure health care costs are distributed fairly across participants because under state law the agency cannot review insurance offered by self-insured employers or to those older than 65 and enrolled in Medicaid, he said.
He called for changes including an “independent and robust” government that has authority and mandated to assess the system as a whole. He also said there needs to be “bold” health care payment reform that offers alternatives to traditional insurance by combining the group's purchasing power, risks and streamline administrative costs.
Health Insurance Commissioner Cory King said his office has received Neronha’s comments and analysis and recommendations from attorney general's actuarial consultant Lewis & Ellis.
“OHIC is in the process of reviewing these documents and recommendations as we finalize our own analysis,” King said. “I expect to bring our rate review process to a conclusion in the next couple of weeks.”
(UPDATE: Comment from OHIC added in 15th and 16th paragraphs.)
Katie Castellani is a PBN staff writer. You may contact her at Castellani@PBN.com.
