‘Staggering, unfair’ Neronha says of proposed Blue Cross rate increases

Attorney General Peter Neronha is recommending the Office of the Health Insurance Commissioner not approve Blue Cross Blue Shield of Rhode Island’s requested 14.3% premium rate increase for individual market plans. Individual market plans are for those who do not receive insurance from their employers.

The rate was submitted to the OHIC to be effective in 2025 and would affect over 17,000 Rhode Islanders. Neronha issued a statement on Friday, representing consumers “as the State’s Health Care Advocate.”

“In a vacuum, this is a significant increase, but when you consider that BCBSRI has sought and received a combined 21.6% increase since 2019, we’re now looking at nearly 40% in seven years,” Neronha said. “This premium increase is staggering, unfair, and certainly does not reflect enhanced accessibility.”

“Our state’s health care system is broken, overburdened by the loss of primary care physicians and other primary care providers, and an aging workforce. My office hears from Rhode Islanders who struggle to find a [primary care provider], and if they can find one, they have a hard time getting an appointment,” he continued, “And yet, insurance companies continue to pursue dramatic rate hikes even as the health care they insure moves further and further out of reach for many Rhode Islanders.”

BCBSRI spokesperson Richard Salit pointed to rising prescription drug costs and an increase in the utilization of medical services as reasons for the rate hike.

“In 2023, BCBSRI’s claims for medical services increased $85 million from the previous year while claims for pharmaceuticals jumped $75 million, resulting in an operating loss of $26 million,” he said in a statement. “The elevated health care cost trends have continued into 2024.”

“BCBSRI is committed to leading access to high-quality, affordable and equitable healthcare,” he added.

Other health insurance companies serving Rhode Island requested rate hikes, averaging 8.8% for individual markets, 15.4% for small markets and 13.6% for large markets. But Neronha’s statement only referenced the individual market plans of BCBSRI and the Neighborhood Health Plan of Rhode Island. NHPRI requested a 5.6% rate hike.

According to an OHIC press release, “key factors influencing the rate requests for 2025 are expected increases in the cost of health care services due to increases in utilization, provider prices and pharmaceuticals.”

For self-funded employer groups (65% of Rhode Islanders with employer-sponsored coverage, according to the OHIC), the proposed rates do not apply.

For the city of Warwick, the rate hikes won’t impact next year’s budget, according to Finance Director Peder Schaefer. The rate is instead based on prior claims by city employees and retirees. For FY25, the health insurance increase was 5.3% and approved in May.