Projo 7 to 7 News Blog

PROVIDENCE, R.I. -- State Health Insurance Commissioner Christopher Koller is asking Rhode Island's three health insurers to withdraw their rate increase requests, including double-digit hikes sought by Blue Cross & Blue Shield of Rhode Island and UnitedHealthCare of New England.

While Koller's decision is drawing praise from Lt. Gov. Elizabeth Roberts, Blue Cross & Blue Shield objects, saying "the costs of healthcare are outpacing the rate of increase in premiums."

If they do not respond, Koller says, he will hold a statutorily required rate hearing, a quasi judicial proceeding in which evidence may be introduced and witnesses called and cross-examined.

"In written and oral public comment alike to this Office, employers and employees have made it clear that the size of the requested increases is not bearable in the current economic climate," Koller said a a statement. "Businesses with commercial insurance should not be asked simply to pick up costs shifted to them by the insurers from other purchasers and providers. Times are difficult. Rate increases should reflect that, not make the times worse."

Lt. Gov. Elizabeth Roberts is praising Koller's decision to ask the state's three health insurers to withdraw requests for rate hikes as great as 16 percent.

Roberts commended Koller for heeding the clear message sent by Rhode Island employees and employers that we can not afford this rate hike. Today I am calling on Rhode Island's health insurers to withdraw their rate factor proposal until all of the stakeholders can sit down and agree on a plan to control health care costs for all Rhode Island businesses and families.

"When this rate filing was first announced, I stood with business leaders to call on the Commissioner to reject the proposed increases. Today's ruling by the Office of the Health Insurance Commissioner provides crucial protection against escalating costs to Rhode Island businesses and families at a time when they are most economically distressed.."

But Blue Cross and Blue Shield of Rhode Island is objecting to the decision Koller related to them on Thursday.

"We appreciate the desire of the Office of the Health Insurance Commissioner to hold the line on healthcare costs, especially in light of the current economic climate," said Rick Farias, chief operating officer for Blue Cross. "Yet, we also have a fiduciary duty to ensure the financial stability of the company, as well as to ensure that we are able to provide the coverage our members and customers need. The vast majority of our request is a result of increases in claims expense. Additionally, the request is based on the fact that previous requests were denied or reduced by [the commissioner's office]. Simply put, the costs of healthcare are outpacing the rate of increase in premiums."
Koller said that under state law, if the insurers do not respond by June 25, he will automatically schedule rate hearings by July 14. Parites to the hearing include the health insurers, Koller's office and the state attorney general.

"We are now considering our next steps and will communicate our decision within the timetable." Farias said.

 Tags  Blue Cross & Blue Shield health insurance Providence RI

Comments

aristotle said:

My predicition, much ado about nothing.

Insurers will get increases but not what they asked for . they are smart enough to know that the numbers they wanted would never fly, but our politicians will compromise and give in to let them have at least half.

Just about what they expected to begin with.

Private insurers vs. State officals, no contest.

The State loses all the time

Link | June 18, 2009 4:38 PM
Report Abuse

---

Leave a comment

Please be civil. Vicious comments, personal attacks and profanity won't be published. Name and email are required; email address will not publish.

Name:

Email:

URL:  

Remember personal info?

Captcha:

Type the characters you see in the picture above.