Yesterday I voiced my vigorous opposition to another request for a
double-digit insurance rate hike by Blue Cross—this time for direct-pay
plans, or those bought by individuals directly from an insurance
company. A 10.2 percent rate hike would affect those who can afford it
least—those who don’t get insurance through their work and the
unemployed—and again underscores the pressing need to find meaningful
ways to curb health-care costs.
Early last summer, a broad coalition came together to denounce a
double-digit insurance rate hike aimed at group plans—and the rate hike
was rejected. We will need to join together again to fight this latest
proposed hike. From my letter to Christopher Koller, health insurance
commissioner:
"All Rhode Islanders are struggling in the current economic
downturn, but individuals and families who purchase their health
insurance directly from insurers are the ones who can least afford this
increase.
"Self-employed Rhode Islanders who own small businesses and those
who have no access to insurance through their employer will bear the
brunt of the proposed double-digit increase.“Some Rhode Islanders who
have lost their jobs must turn to direct-pay plans to retain health
insurance. In the face of double-digit increases, I fear that many
self-employed and unemployed individuals will choose to go without
insurance.
“This spiraling upward of health insurance rate increase requests
will only continue if we do not address the underlying escalating costs
of health care. The proposed rate increase should be rejected at this
time and instead we should redouble our efforts to make controlling the
costs of health care the focus of our implementation of health care
reform in Rhode Island."
The next public hearing on the rate hike will be at 9:30 a.m. on
Tuesday, January 26, at the PUC, 89 Jefferson Blvd., Warwick. Come in
person, or you can send a letter to Commissioner Koller before the
hearing to be introduced as testimony: 1511 Pontiac Avenue, Building
69-1, Cranston, 02910.
UPDATE: BCBS submitted additional proposed rate hikes on January 22—this time for small and large business plans—of 11.5 percent and 14.6 percent, respectively. I’ve submitted a letter to Commissioner Koller asking him to reject the application for these rate hikes as well. Rhode Island businesses continue to struggle to survive; the proposed double-digit increases in health insurance premiums will put extreme strain on business budgets and may contribute to the erosion of employer-sponsored insurance in the state.