RI Health Insurance Carriers Request 2022 Rate Hikes

RI Health Insurance Carriers Request 2022 Rate Hikes

On June 28, the Office of Health Insurance Commissioner (OHIC) released the individual, small, and large group market premium rates requested by Rhode Island’s insurers. And the average increases sought range from 2.9% to 17.5% in the small group market and 5.3% to 14.1% in the large group.

The requests, below, were filed as part of OHIC’s rate review and approval process, and are for rates effective in 2022. Two insurers, Blue Cross Blue Shield of Rhode Island (BCBSRI) and Neighborhood Health Plan of Rhode Island (NHPRI), filed plans to be sold on the individual market for persons who do not receive insurance through their employer. In addition to BCBSRI and NHPRI, UnitedHealthcare and Tufts Health Plan filed small group market plans. Five insurers (BCBSRI, UnitedHealthcare, Tufts Health Plan, Aetna, and Cigna) filed large group rates.

 

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As in previous years, key factors influencing the rate requests for 2022 are expected increases in the cost of health care services.

OHIC will now review all pricing assumptions, administrative charges, and other information to assess the reasonability of the premium requests by each insurer. Based on the following quote from Health Insurance Commissioner Patrick Tigue in the press release announcing the filings, it seems likely that OHIC will push back on the insurers.

“I am concerned by many of the requested premium increases,” said Health Insurance Commissioner Patrick M. Tigue. “Recently, health insurers have generated substantial profits as a result of the reduction in medical services experienced during the coronavirus disease 2019 public health emergency. My office will scrutinize the requested increases and critically evaluate the necessity of significant increases, given the overall financial health of the insurers.”

Public comment on the proposed rates will be accepted through August 6, 2021.

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.