Attorney General Objected to Health Insurance Hikes. What Happens Next? - Sam Slade

Attorney General Objected to Health Insurance Hikes. What Happens Next? - Sam Slade

Even before the Office of the Health Insurance Commissioner’s approval of the proposed rates submitted by the state’s health insurers for groups and individuals in 2021, Rhode Island Attorney General Peter Neronha took issue with some of the hikes.

Specifically, the AG used his statutory authority to object to increased rates in the individual market filed by Blue Cross Blue Shield of RI and Neighborhood Health Plan of Rhode Island. BCBSRI filed for a 5.7% increase and Neighborhood requested a 5.8% increase. Neronha claimed the increases will affect more than 45,000 Rhode Islanders who are also facing rising unemployment rates and the challenging economic conditions stemming from COVID-19.

While OHIC ultimately approved lower rate hikes than the insurers requested, at 3.3% for BCBSRI and 4.7% for Neighborhood, Neronha was still dissatisfied with the outcome, stating that his office considered them unnecessary and ill-advised at this time. According to actuarial reports compiled by experts his office retained, lower rate increases of 1.2% for BCBSRI and 0.6% for NHPRI were all that could be justified.

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But at this point, the rate increases are set for 2021. That’s because when OHIC approves them, it’s a legally binding decision. Since consumers, including employers and their employees, will need to pay the increased costs that come with the approved rates, it’s important to exercise due diligence and consider all the alternatives:

- changing health plans
- looking at alternative plan designs
- possibly even self-funding for larger employers

There are many options and consumers can save a lot by investing the time to understand their choices.   

Sam Slade is Managing Director, Employee Benefits, at The Hilb Group of New England, where he delivers consulting and brokerage services to local employers. He has extensive experience in all aspects of employee benefits, including underwriting, plan design, communications, compliance, and analytics, with a particular focus on alternative funding and self-insurance. Sam lives in South Kingstown with his wife and three sons.