PROVIDENCE, R.I. (WLNE) — Attorney General Peter Neronha said that Rhode Islanders are not receiving “affordable and accessible” after Blue Cross Blue Shield of Rhode Island released its proposed price increases for 2025.

In a brief where he represents “consumers of insurance” in the state Neronha said that the company is seeking a 14.3% increase in rates, which when combined with the “combined 21.6%” increase since 2019, is a nearly 40% increase over seven years.

The Attorney General added that the increase in rates would affect more than 17,500 individuals in the state.

“This premium increase is staggering, unfair, and certainly does not reflect enhanced accessibility,” Neronha said.

Blue Cross Blue Shield said that the proposed rates “reflect ongoing increases in the cost of healthcare,” which the insurer said are driven by prescription prices and a nationwide surge in medical service usage.

Neronha’s full statement can be read below:

Rhode Islanders deserve affordable and accessible health care, and right now they are receiving neither. Blue Cross and Blue Shield of Rhode Island is statutorily required to provide reasonably priced health insurance, and yet the company is seeking an average increase of 14.3% affecting more than 17,500 individual market plan consumers. 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. 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 PCP, and if they can find one, they have a hard time getting an appointment. 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.

Health care in Rhode Island is in desperate need of systemic reform. Unless and until this changes, I will not support significant insurance rate increases.

Blue Cross Blue Shield’s full statement can be found below:

Blue Cross & Blue Shield of Rhode Island has filed proposed 2025 rates with the Office of the Health Insurance Commissioner (OHIC) for small and large group customers and for the individual market.

The proposed rates reflect ongoing increases in the cost of healthcare driven by soaring prescription drugs costs and a widely reported nationwide surge in the utilization of medical services post-pandemic. 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. The elevated health care cost trends have continued into 2024.

BCBSRI is committed to leading access to high-quality, affordable and equitable healthcare.