Blue Cross refuses to withdraw rate hike requests
12:08 PM Fri, Jun 26, 2009 | Permalink
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Blue Cross & Blue Shield of Rhode Island won't withdraw its proposed double-digit rate hikes as requested by state Health Insurance Commissioner Christopher F. Koller. As a result, state law requires that a formal rate hearing begin by July 14 on the rates proposed for next fall. The nonprofit company announced in a news release that it would continue to seek the rate increases --13.9 percent for small employers and 16.3 percent for large employers -- because without them it would stand to lose $125 million. "We understand that many of our members are suffering in the current economic conditions, but the fact is that rising medical costs and increased utilization of services are climbing faster than our rates," James E. Purcell, president and CEO, said in a statement. "Quite frankly, the OHIC [Office of the Health Insurance Commissioner] is putting the state's oldest nonprofit health insurer at financial risk by denying our filing. We simply cannot afford to lose $125 million." Purcell said the company has reduced its operating expenses, including eliminating 79 positions, renegotiated vendor contracts and frozen employee salaries. He said the company's "much contested new headquarters" will actually save $25 million over the long-term. "Unfortunately, it is not administrative expenses, but medical costs that are the primary drivers of rate increases and which necessitate our rate filing at this time," Purcell said. 
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It would be interesting to find out what the executive bonuses totalled in realtion to their actual pay. (would also be nice to se a side by side comparison)
If the "general public" is going to be forced to pay an ADDITIONAL 14-16% increase, I am sure they would also like to see that it won't find it's way into someone else's pocket, bbased on a performance report.
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I agree...
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my question is why waste time even reporting this or having a hearing - I will stake my life on this right now saying that it really won't matter anyway - this is the healthcare world we are talking about and they ALWAYS get whatever it is they ask for.. They just gave the finger to Koller and everyone else. So much for Obama fixing the medical care crisis - when the rate hike occurs (and as I said it will-because they are the ones contributing the most to the flippin useless politicians) it will only help put RI into a more poverty driven state. Congrats to BCBS thanks so much for helping out during the economic crisis. Guess we should all pray we dont need medical care in the future....
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Mr. Purcell, all I can say is do a better job lowering your administrative costs, as they are above your peers...and what about the massive reserve you have and continue to add cash too, reduce this amount as you can....and what about the new building, sell it or rent it out, move to a lower cost location...like johnston or Foster....As far as I am concerned you should not have a not-for-Profit standing since you are running your company, and treating your customers like you a for profit business...Smarten up, do you think we are all dumb? I also think this a big test for the Office of Health Commissioner to stand up and fight it with earnest...threaten to remove their not for profit standing...do something bold as I am sick and tired of the same old bull with these groups who feel entitled.
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Do these idiots take into consideration how many subscribers they will loose and how that will affect their bottom line?
I am self-employed and pay just under $9000.00 per year for my SINGLE coverage.
Any increase will cause me to drop my coverage and they can include me in the ranks of the uninsured.
They already play games with prescription co-pays. Two of my prescriptions went up one from a $15.00 co-pay to $50.00 and another from $7.00 co-pay to $35.00 because they decided to change it’s classification after 5 years.
I have friends in Canada and contrary to what you hear they love they medical system. One fractured his ankle in RI and went back to Canada to have the procedure performed. He was taken care of the day he got home. Not too bad for a system that our government always criticizes. I’m sure their system is not perfect but sounds better than ours.
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