CRANSTON – The R.I. Office of the Health Insurance Commissioner released its approved health insurance premium rates for 2021 Friday, saying it has saved Rhode Island consumers $12.9 million by cutting insurers’ proposed rate increases, a smaller savings compared with $15.6 million in savings for 2020 rates.
Large-group market insurance rates were approved for rate changes ranging from a decrease of 0.3% to an increase of 9.6% for 2021, according to the health insurance commissioner’s office.
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Small-group market insurance rates were approved for rate changes ranging from a decrease of 0.05% to an increase of 2.9%.
Individual market health insurance rates were approved for rate increases ranging from 3.3% to 4.7%.
The office said in a statement that it was committed to keeping the cost of insurance affordable, as Rhode Islanders continue to face the economic hardships brought on by the spread of COVID-19.
“Consumer protection remains at the forefront of all of OHIC’s work. Affordable access to health care services is more important now than ever before,” said Health Insurance Commissioner Marie L. Ganim. “We know that Rhode Islanders are facing increasingly difficult hardships due to the spread of COVID-19, and our office is working hard to make accessing the health care services they need easier and more affordable.”
R.I. Attorney General Peter F. Neronha slammed the office’s approval of the rate increases due to the economic challenges of the pandemic.
“I am disappointed and very concerned by the Office of Health Commissioner’s approval today of health insurance rate increases in the individual market for Blue Cross & Blue Shield of Rhode Island and Neighborhood Health Plan of Rhode Island,” said Neronha in a statement. “We consider the rate increases approved by the Office of Health Insurance Commissioner for Blue Cross and Neighborhood to be unnecessary and ill-advised at this time.”
2021 individual-market rates:
Blue Cross & Blue Shield of Rhode Island was approved for a 3.3% increase for individual rates, less than than its requested 5.7% increase, while Neighborhood Health Plan of Rhode Island was approved for a 4.7% increase after requesting a 5.8% increase for individual rates.
In 2020, Blue Cross was approved by OHIC for a 1.5% decrease for individual rates while Neighborhood was approved for a 0.2% decrease for individual rates.
According to the statement by the attorney general’s office, Neronha objected to the increasing of rates for 45,000 Rhode Islanders and their families who will have to pay more in health care coverage during the pandemic and said that he was concerned that these increases will have a “detrimental impact” on those who can least afford them.
Neronha said both Blue Cross and Neighborhood Health have reserves that are more sufficient to meet minimum state and federal guidelines.
“Insurers may claim they got less than they asked for but their record is clear – nearly every year they request an increase that regulators find exceeds what is reasonable and necessary,” said Neronha in his statement. “Asking for the sun and getting the moon when the moon is really what you want anyway is a win, plain and simple.”
2021 small-group market rates:
The weighted-average rate-change approvals for the small-group market PPO, or preferred provider organization, plans ranged from a 0.5% decrease for UnitedHealthcare to a 2.1% increase for Neighborhood Health.
The rate request by the Tufts Health Plan HMO, or health maintenance organization, for the small-group market was approved at a 2.9% increase compared with the 3.9% increase it requested. United’s HMO rate was approved for a 2.3% increase.
Blue Cross’ 3.9% requested rate increase was trimmed to 2.7% for 2021, while Neighborhood Health’s request for a 1.8% increase in its rates was approved.
2021 large-group market rates:
Large-group commercial market approval rate changes ranged between a decrease of 0.3% to an increase of 9.6%.
Tufts Health Plan PPO’s requested 9.6% increase was trimmed to 8.5% by OHIC, while its HMO’s requested 10.7% increase was shaved to a 9.6% rate increase. Blue Cross’ request for a 5.2% increase was reduced to a 4.5% increase for 2021, and UnitedHealthcare’s 9.3% increase request was reduced to an 8.1% increase. Aetna Inc.’s request for a 0.3% decrease in its rates was approved, as was Cigna’s 0.6% increase.
Alexa Gagosz is a PBN staff writer. Email her at Gagosz@PBN.com.
