AG questions health insurance rate hike requests

RI Attorney General Peter Neronha. Photo by Steve Klamkin WPRO News

PROVIDENCE, R.I. (AP) — Rhode Island Attorney General Peter Neronha has filed objections to rate increases sought by health insurers that do business in the state.

The rate proposals currently under consideration by the Office of the Health Insurance Commissioner “raised concerns about affordability” for people who buy policies on the individual market, Neronha said, according to The Providence Journal.

“Given the effects of the COVID-19 pandemic over the past year, and in light of our analysis of the current financial strength of the involved health insurers, higher rates are not warranted, nor affordable for over 42,000 Rhode Islanders who purchase insurance on the individual market, and nearly 140,000 subscribers of small and large employer group plans,” he said.

Blue Cross Blue Shield’s request is for a 3.1% increase in the individual market. Neighborhood Health Plan is seeking an 8.5% increase.

Neighborhood said it offers the lowest cost health plans on the state’s health insurance marketplace and even with the proposed rate increase “Neighborhood will still be the most cost effective option.”

Blue Cross Blue Shield in an email said it “recognizes the ongoing economic challenges facing its members due to COVID-19 and took steps to limit proposed rate increases.”

The commissioner’s ruling is expected later this month.