The insurer requested a 14.3% average increase in its individual market plan, affecting over 17,600 Rhode Islanders

PROVIDENCE – Rhode Island’s Office of the High Insurance Commissioner should not approve a steep premium rate hike requested by Blue Cross and Blue Shield of Rhode Island, said Attorney General Peter Neronha in a statement Friday.

BCBSRI requested a 14.3% average increase in its individual market plan for its 2025 premium rates, affecting more than 17,600 Rhode Islanders enrolled with BCBSRI. It is a marked increase from previous years; between 2019 and 2022 the average approved rate by OHIC in the individual market was 3.4%.

Neronha also noted that BCBSRI “has sought and received a combined 21.6% increase since 2019.” Approving the rate requested for next year would put the total increase at nearly 40% in seven years.

“To put it bluntly, we have a system that is broken. While rates continue to go up, our health care system stands on the brink of collapse. Insurers get what they need, while consumers, providers, and our healthcare system continue to suffer. We need systemic reform – not tinkering on the margins,” said the brief Neronha submitted to Cory King, Rhode Island’s High Insurance Commissioner.

Insurers ask for steep rate hikes across the board

BCBSRI is not the only insurer requesting rate hikes to premiums, nor is its request the steepest. One insurer is asking for a rate increase of 22.7% in the small group market, which would affect 1,644 enrollees.

On average, insurers are asking for the following rate hikes:

• Individual market (over 47,000 enrollees): 8.8%
• Small group market (over 44,000 enrollees): 15.4%
• Large group market (nearly 80,000 enrollees): 13.6%

These are steeper hikes than in previous years. In 2019-2022 the average approved rates were:

• Individual market: 3.4%
• Small group market: 3.0%
• Large group market: 6.7%

Only proposed rate hikes over 10% in the individual market trigger a review by the attorney general, according to Timothy Rondeau, deputy communications director at Neronha’s office. But Rondeau said the attorney general will submit comments to OHIC on the other proposed increases in the coming weeks.

Opposition to proposed rate hikes

The requested rate hikes have drawn opposition from some state leaders and business representatives.

Democrat State Rep. David Morales has urged Rhode Islanders to submit comments to OHIC opposing the rate hikes.

“These proposed rate hikes are outrageous and would just make healthcare inaccessible for thousands of working people,” Morales posted on X, formerly known as Twitter.

Al Charbonneau, executive director of Rhode Island Business Group on Health, a nonprofit representing about 90 companies with 80,000 employees, also voiced his concerns at a recent OHIC Town Hall meeting. He said businesses are worried about how the rate hikes will affect them.

“The proposed increases are being taken as a shock to them, to be candid with you. Many employers don’t quite know what to do next,” Charbonneau said.

The proposed rate hikes do not apply to self-funded employer groups, which account for about 65% of Rhode Islanders with employer-sponsored coverage, according to an OHIC press release.

Several factors influence the rate requests, according to OHIC, which each year reviews and either approves, rejects or modifies the insurers’ requests. Among these are “expected increases in the cost of health care services due to increases in utilization, provider prices, and pharmaceuticals.”

A decision from OHIC is expected sometime in August.

Comments about the proposed rate hikes can be sent to OHIC.HealthInsInq@ohic.ri.gov.

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.