Rhode Island
AG urges R.I. health insurance commissioner to reject proposed premium hikes
Rhode Island Attorney General Peter Neronha repeated his calls to fix the state’s ailing health care system in a memo opposed to proposed health insurance premium hikes. The memo also contained thoughts on the subpar funding and financials of Rhode Island’s hospitals, which Neronha also discussed at length during a Health Care Summit at the Rhode Island State House on May 28, 2024, seen here. (Alexander Castro/Rhode Island Current)
Deny, deny, deny: That’s what Rhode Island Attorney General Peter Neronha is asking the state’s health insurance commissioner to do with the premium hikes requested by a half dozen Rhode Island insurance companies for 2025.
Neronha’s office shared on Tuesday a letter to Cory King, who leads the state’s Office of the Health Insurance Commissioner (OHIC). In his letter, Neronha asks the commissioner to reject health insurers’ requested increases that “range from an arguably modest 2.5% to an astronomical 22.7%.”
Earlier this month, Neronha issued a memo opposing proposed 2025 rates by Blue Cross Blue Shield of Rhode Island, the only individual market insurer who submitted an increase more than 10% higher. Neronha’s latest critique is a blanket rejection of proposed increases for small- and large-group plans from six insurance companies.
Neronha being at odds with health insurers is nothing new — he recommended against requested rate hikes last year, too. King’s office approved most requested rates, albeit with a few percentage points shaved off, which still led to a savings of approximately $24 million. The commissioner is expected to release his office’s decision on this year’s proposed rates later this month.
The Office of Attorney General uses actuaries to analyze proposed rate increases and determine their feasibility. The health insurance commissioner also analyzes the rates, solicits public feedback and ultimately approves or denies the requested increases.
Neronha, whose job duties include consumer protection, wrote in his latest memo that actuarial recommendations might only scratch the surface of a deeper problem.
“It is not the role of the Attorney General to simply advise whether the actuarial projections provided by an insurer can support requested rate increases; rather, it is incumbent upon the Attorney General to also determine whether such increases are warranted given the health care and economic landscape against which they are sought,” Neronha wrote. “[T]o put it bluntly, we have a system that is broken.”
Neronha pointed out in his memo that “despite significant collective” investment in the health care system, U.S. residents don’t get much bang for their buck, with life expectancy six years lower than in similar countries and subpar health outcomes for people of color.
Another systemic problem, specific to Rhode Island: The health insurance commissioner only had jurisdiction over about 15% of Rhode Islanders, thanks to what Neronha calls “the fractured nature of our regulatory scheme.” King’s office reviews rates for only certain kinds of insurance. Self-insured employers who offer insurance via the Employee Retirement Income Security Act of 1974 (ERISA) are exempt because federal law dictates those arrangements.
Still, Neronha added in a footnote that some health insurers have started to use this office’s tips on methodology, such as changing the data sources used for calculating manual rates, tweaking risk adjustment calculations or calculating small group rates based on comparable data from Massachusetts rather than Pennsylvania.
“Yet, even when robust actuarial methods are followed, rate increases continue,” Neronha wrote.
In response to Neronha’s latest critique, Blue Cross reiterated its previous statement: Rising prescription drug costs and higher utilization of medical services in the post-pandemic age ultimately led Blue Cross to an operating loss of $26 million in 2023, wrote spokesperson Jeremy Duncan in an email Thursday.
Spokespeople for both Neighborhood Health Plan and UnitedHealthcare had no comment on Neronha’s memo. The latter had the priciest request overall, with a proposed 22.7% hike on small group market rates.
Neronha’s office did not respond to multiple requests for copies of its actuaries’ reports and recommendations.
Any proposed rate increase over 10% requires review by the attorney general’s office, which is why Neronha targeted Blue Cross in his earlier comments and left alone Neighborhood, with its 5.6% increase. But the most expensive proposals — and the largest number of people whose premiums would be affected — are found in the proposed increases for small- and large-group plans offered by employers.
Al Charbonneau, executive director of Rhode Island Business Group on Health (RIBGH), wrote in an emailed statement that the group “agrees with the Attorney General that our healthcare system, both in Rhode Island and across the country, is indeed broken…and we support the Attorney General’s call for more substantial changes.”
The rate increases should be rejected, Charbonneau wrote, as they contribute to an “unsustainable” and expensive situation for Rhode Island consumers. A recent brief from the group found that nearly 28% of median household income can now be attributed to Rhode Island’s commercial family premiums.
“Our analysis shows that the delivery system is the major cause of increasing premiums, although all involved in the provision of services and insurance need to contribute more to affordability,” Charbonneau wrote. “RIBGH supports the idea of paying more to primary care physicians and nursing personnel but also calls for a thorough understanding of where the money was spent if it was not used to support nurses, for example.”
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Rhode Island
Medical school at URI won’t ensure primary care docs for RI | Opinion
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The doctor is not in, and there’s not one on the way either. Many Rhode Islanders are well aware that the state is facing a harrowing shortage of primary care physicians. As native Rhode Islanders and physicians invested in quality accessible primary care for our community, we are dedicated to working towards policies to support our state.
A medical school at the University of Rhode Island is not the solution to solve the primary care crisis. A medical school at URI would not provide a timely solution, would likely not achieve the target outcome of increasing the number of primary care physicians in the state, and would likely not address the underlying issue of getting doctors to stay. Instead, resources should be allocated now to supporting primary care in ways that would make sustainable change.
Lack of access to primary care is hurting patients now. A medical school at URI would not be a short- or long-term solution. In addition to the time needed to engineer an accredited medical school, it takes seven years to produce an inexperienced primary care physician. Once trained, there still must be an incentive to stay in Rhode Island. Patients do not have access to necessary care for acute and chronic conditions. The burden on our health care system, impacting ER wait times and hospital capacity, impacts everyone. We cannot afford to wait another decade for a solution.
More physicians does not equal more physicians in primary care or in Rhode Island. If the aim is to produce more physicians from URI’s medical school, this will certainly occur, but we should not delude ourselves into believing it will fix primary care. It’s not due to lack of opportunities. In 2019, the National Resident Matching Program offered a record number of primary care positions, yet the percentage filled by students graduating from MD-granting medical schools in the United States was a new low. Of 8,116 internal medical positions that were offered, just 41.5% were filled by U.S. students; most residency spots went to foreign-trained and U.S.-trained osteopathic physicians.
As medical schools across the country look to debt reduction as a means of encouraging students to enter primary care specialties, their goals have fallen far short. In 2018, The New York University School of Medicine offered full-tuition scholarships to every medical student, regardless of merit or need. In 2024, only 14% of NYU’s graduating seniors entered primary care, lower than the national average of 30%.
There must be an incentive to stay in Rhode Island (or at least not a disadvantage). Our efforts must shift to recruiting and maintaining physicians in primary care. Inequitable reimbursement from commercial insurers between Rhode Island and neighboring states (leading to significantly lower salaries than if you lived here and traveled to Attleboro to care for patients), the lack of loan repayment(average medical student debt is $250,000, forcing the choice between meaning and money), and the ongoing administrative burdens are amongst the drivers away from primary care. Rhode Island needs to get on par with surrounding states to prevent physicians from going elsewhere.
The motivations behind opening a medical school are well intended in terms of wanting to increase the number of primary care providers by enabling local talent to train close to home. Training more people in Rhode Island will not keep them here; it will invest significant resources without addressing the root of the issue. Until there are comparable salaries between Rhode Island and our neighbors, until loan repayment is improved and the administrative burdens are reduced, primary care in the state will forever be fighting an uphill battle. Both providers and patients suffer the consequences.
Dr. Kelly McGarry is the director of the General Internal Medicine Residency at Rhode Island Hospital. Dr. Maria Iannotti is a first-year resident, a Rhode Islander intent on practicing primary care in Rhode Island.
Rhode Island
Truckers ordered to pay own legal bills from failed RI toll lawsuit
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The trucking industry will have to pay its own legal bills for the unsuccessful eight-year-old lawsuit it brought to stop Rhode Island’s truck toll system, a federal judge ruled Friday, March 27.
The American Trucking Associations was seeking $21 million in attorneys fees and other costs from the state, but a decision from U.S. District Judge John McConnell Jr. says the truckers lost the case and will have to pick up the tab.
The state had previously filed a counterclaim for reimbursement of $9 million in legal bills, but an earlier recommendation from U.S. Magistrate Judge Patricia Sullivan had already thrown cold water on that possibility.
McConnell ordered American Trucking Associations to pay Rhode Island $199,281, a tiny fraction of the amount the state spent defending the network of tolls on tractor trailers.
Settling the lawyer tab may finally bring an end to a court fight that bounced back and forth through the federal judiciary since the toll system launched and the truckers brought suit in 2018.
As it stands, the state’s truck toll network has been mothballed since 2022 when a since-overturned judge’s ruling temporarily ruled it unconstitutional.
The Rhode Island Department of Transportation said it hopes to relaunch the tolls around March 2027.
The court costs fight hinged on which side could claim legal “prevailing party” status as the winner of the lawsuit.
The trucking industry claimed that it had won because the First Circuit Court of Appeals ruled an in-state trucker discount mechanism, known as caps, in the original truck toll system was unconstitutional.
But Rhode Island argued that it is the winner because the appeals court had ruled that the larger system and broad concept of truck tolls is constitutional and can relaunch with the discounts stripped out.
“The Court determines that ATA has vastly overstated the benefit, if any, that they have received from the ultimate resolution of their challenge to the RhodeWorks program,” McConnell wrote.
The truckers “failed to obtain any practical benefit from the First Circuit’s severance of the [in-state toll] caps,” he went on. “Specifically, the evidence from this dispute confirmed that the lack of daily caps will result in ATA paying a higher amount in daily tolls and that it does not receive any tangible financial benefit from their elimination.”
In her December analysis of the legal fees question, Sullivan had concluded that the Trucking Associations’ outside counsel had overbilled and overstaffed the case.
But she had recommended that the industry be reimbursed $2.7 million for its bills, while McConnell’s ruling gives it nothing.
Rhode Island
Think you’re middle class in Rhode Island? Here’s the income range
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Your household can earn more than $160,000 a year and still be considered part of the “middle class” in Rhode Island, according to a recent study by SmartAsset.
Rhode Island is the state with the 17th-highest income range for households to be considered middle class, based on SmartAsset’s analysis using 2024 income data from the U.S. Census Bureau. The Pew Research Center defines the middle class as households earning roughly two-thirds to twice the national median household income.
According to a 2022 Gallup survey, about half of U.S. adults consider themselves middle class, with 38% identifying as “middle class” and 14% as “upper-middle class.” Higher-income Americans and college graduates were most likely to identify with the “middle class” or “upper-middle class,” while lower-income Americans and those without a college education generally identified as “working class” or “lower class.”
Here’s how much money your household would need to bring in annually to be considered middle class in Rhode Island.
How much money would you need to make to be considered middle class in RI?
In Rhode Island, households would need to earn between $55,669 and $167,008 annually to be considered middle class, according to SmartAsset. The Ocean State has the 17th-highest income range in the country for middle-class households.
The state’s median household income is $83,504.
How do other New England states compare?
Rhode Island has the fourth-highest income range for middle-class households in New England. Here’s what households would have to earn in neighboring states:
- Massachusetts (#1 nationally) – $69,885 to $209,656 annually; median household income of $104,828
- New Hampshire (#6 nationally) – $66,521 to $199,564 annually; median household income of $99,782
- Connecticut (#10 nationally) – $64,033 to $192,098 annually; median household income of $96,049
- Rhode Island (#17 nationally) – $55,669 to $167,008 annually; median household income of $83,504
- Vermont (#19 nationally) – $55,153 to $165,460 annually; median household income of $82,730
- Maine (#30 nationally) – $50,961 to $152,884 annually; median household income of $76,442
Which state has the highest middle-class income range?
Massachusetts ranks as the state with the highest income range to be considered middle class, according to SmartAsset. Households there would need to earn between $69,900 and $209,656 annually. The state’s median household income is $104,828.
Which state has the lowest middle-class income range?
Mississippi ranks last for the income range needed to be considered middle class, according to SmartAsset. Households there would need to earn between $39,418 and $118,254 annually. The state’s median household income is $59,127.
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