CRANSTON – The Office of the Health Insurance Commissioner published the approved commercial health insurance rates for 2019 on Friday, saying that the rates will be $21.9 million lower for state ratepayers than the premiums that insurers requested.
The average rate change for commercial small and large group market plans in the state range from a decline of 5 percent to an increase of 10.3 percent. OHIC noted that premiums have been driven up primarily by increases in prescription drugs and hospital outpatient costs. Insurance plans for individuals also saw premium increases approved.
“This has been a challenging year as we have faced multiple policy decisions at the federal level designed to undermine market stability,” said Health Insurance Commissioner Marie L. Ganim. “OHIC responded to these threats quickly to protect consumers as much as possible. Although we have cut insurers’ rate requests substantially, and are holding average rate increases to single-digits for the carriers with the most enrollment, we know that health care costs remain too high for too many Rhode Islanders. OHIC will continue to use all available regulatory and market tools to control costs for Rhode Island consumers.”
2019 Individual Market rates:
2019 individual market rate changes included a 7.5 percent increase for the Blue Cross & Blue Shield of Rhode Island (the insurer had requested a 10.7 percent increase) and an 8.7 percent increase for Neighborhood Health Plan of Rhode Island that was the same as the company requested.
OHIC said that the base monthly premium rate for a 21-year-old on the individual market benchmark plan was $243.01 in 2018 and will be $262.74 in 2019. The office added that the 2018 benchmark plan was the least expensive such plan in the nation.
2019 Small Group Market rates:
The weighted average rate change approvals for the small group market ranged from 10.2 percent to -5 percent.
The Tufts Health Plan HMO was approved for the largest increase in the state at 10.2 percent, after requesting a 10.9 percent increase.
The UnitedHealthcare PPO plan was approved for the 5 percent reduction after requesting a 0.6 percent reduction.
2019 Large Group Market rates:
Large market commercial rate increase approvals ranged between 8 percent and 10.3 percent.
The Tufts Health Plan HMO had the largest – a 10.3 percent increase – the same as the plan’s request.
The BCBSRI large group plan saw the smallest increase of the four available plans at 8 percent following a 10.6 percent rate increase request.
Chris Bergenheim is the PBN web editor. He can be reached at Bergenheim@PBN.com.