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Blues among trio of health insurers seeking rate hike in Rhode Island

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Health insurance companies UnitedHealthCare, Blue Cross & Blue Shield of Rhode Island and Tufts Health Plan have all filed for double-digit rate increases for next year.

According to the Providence Journal, UnitedHealthCare is seeking to raise premiums an average of 11.8% for companies with 50 or fewer employees and 15.5% for those with more than 50 employees. The newspaper noted that the proposed 15.5% hike is larger than the Rhode Island Blues or Tufts, both non-profit entities.

Tufts is seeking rate hikes averaging 11% to 12 % with the Blues filing for an average premium increase of 12.4% for small group plans and 13.4 % for large groups applying to group renewals next year, according to the newspaper.

Gus Manocchia

Under new rules by the Rhode Island Office of the Health Insurance Commissioner, Christopher Koller, rate requests for 2011 were due by May 17.

In a statement announcing its rate filing, the Blues noted the state’s annual healthcare expenditures is expected to exceed $9 billion in 2010, double the amount of a decade ago.

“Premium costs directly reflect the increasing cost of healthcare,” said Gus Manocchia, vice president and chief medical officer for the Rhode Island Blues. “Driven primarily by hospital and prescription drug increases, the cost of providing medical care continues to significantly exceed inflation. Given these circumstances, premium rates have not been able to keep pace with increasing medical claims costs, which for BCBSRI were approximately $1.5 billion in 2009.”

Manocchia added that hospital costs now account for 42% of the insurer’s member claims, “the most significant driver” of rising healthcare costs, along with prescription drugs and outpatient services driving cost increases.

“We realize that these cost increases cannot—and should not—continue,” he said “That’s why BCBSRI is taking aggressive short- and long-term steps to not only moderate healthcare costs, but to also partner with the state’s healthcare providers to improve the quality of care provided to our members.”

Rhode Island Attorney General Patrick C. Lynch told the Journal he opposes all the increases and said Blue Cross “mismanagement” is the reason for the insurer’s request. He noted the company’s operating expenses rose 40.3% in 2006 to 2009.

Lynch’s office reviews rate increase requests and makes recommendations to the health insurance commissioner’s office.


Blues among trio of health insurers seeking rate hike in Rhode Island via IFAwebnews.com .


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