CRANSTON – Rhode Island’s four largest health insurers have requested premium increases across the board and in all market categories for 2018, breaking the trend of past years when some insurers had requested lower rates, according to a release posted Thursday by the R.I. Office of the Health Insurance Commissioner.
In the small-group market, UnitedHealthcare proposed the largest increase compared with last year’s rate, requesting a 12.8 percent premium increase for both its HMO and PPO plans in 2018. For 2017, UnitedHealthcare requested only a 0.4 percent increase, which the OHIC modified to a 1.8 percent decrease before final approval.
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Tufts Health Plan also proposed a significant premium hike over last year, requesting a 6 percent increase for its HMO plan and a 6.5 percent increase for its PPO plan in the small-group market. For the 2017 term, Tufts requested a 1 percent decrease for HMO and a .9 percent decrease for the PPO, which were both approved by the OHIC.
Neighborhood Health Plan of Rhode Island and Blue Cross & Blue Shield of Rhode requested increases in the small-group market of 5.8 percent and 8.6 percent, respectively, for 2018.
Last year, Neighborhood Health proposed a 2.7 percent decrease and was approved for a 3.1 percent decrease. BCBSRI requested a 3.9 percent increase in the small-group market for 2017 and the OHIC approved a increase of 2.1 percent.
Both Neighborhood Health and BCBSRI also requested increases in the individual market. Neighborhood Health requested a rate increase of 5 percent, compared with the 5 percent decrease requested for 2017, which the OHIC modified to a 5.9 percent decrease.
BCBSRI requested a 13.9 percent increase to individual market premiums for 2018. Last year, BCBSRI requested a 9 percent increase that was adjusted to 5.9 percent before approval.
The Thursday announcement of the proposed individual and small-group market rates followed the posting last month of the increases requested for the large-group market. BCBSRI, UnitedHealthcare and Tufts all requested significant rate increases compared with previous years.
In a statement Thursday, BCBSRI attributed the rate increases to the rising costs of health care, the amount of services used, and the reintroduction of the federal health insurer tax, which was temporarily suspended in 2017.
“This is a critical moment for our state in addressing the challenge of healthcare affordability,” said Kim Keck, CEO of BCBSRI. “We have to accelerate our adoption of new care models, introduce innovative products into the market, and enable providers, employers and members to access technology tools that can facilitate smarter choices about care.”
BCBSRI pointed to its affordability-focused initiatives, including the introduction of new technology, expanding the number of members who participate in incentive programs, and improving participation in consumer-driven health plans.
“We are committed to working with providers and consumers to more effectively control these costs,” said Keck.
The OHIC will accept public comment on the proposed rate increases through July 27, 2017. On Tuesday, July 18, Dr. Kathleen C. Hittner, the state’s health insurance commissioner, will host a public meeting at the R.I. Public Utilities Commission to invite input on the proposed rates.
The OHIC expects to release its final decision on the proposed increased in August.
Kaylen Auer is a PBN contributing writer.
