RI Health Insurers Seeking Massive Rate Increases for 2025
GoLocalProv Business Team
RI Health Insurers Seeking Massive Rate Increases for 2025
On Friday, Rhode Island's Office of Health Insurance Commissioner (OHIC) unveiled the individual, small group, and large group market premium rates requested by Rhode Island’s insurers.
Some of the rate increases are above 20%.
GET THE LATEST BREAKING NEWS HERE -- SIGN UP FOR GOLOCAL FREE DAILY EBLASTThe requests filed by health insurers are filed as part of OHIC’s annual rate review process (for rates effective in 2025).
OHIC Breakdown
Tables 1 – 3, below, summarize the insurers’ requests for 2025. 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 to persons who do not receive insurance through their employer—in addition to BCBSRI and NHPRI, UnitedHealthcare, Harvard Pilgrim Health Care of New England (HPHC), and Harvard Pilgrim Health Care Insurance Company (HPIC) filed small group market rates. Five insurers (BCBSRI, UnitedHealthcare, HPHC/HPIC, Aetna, and Cigna) filed large group rates.
OHIC writes, "Requested average rate increases range from 5.6% to 14.3% in the individual market. In the small group market, insurers requested average increases ranging from 8.8% to 22.7%. Large group market requested average rate increases range from 2.5% to 14.9%. Key factors influencing the rate requests for 2025 are expected increases in the cost of healthcare services due to increases in utilization, provider prices, and pharmaceuticals. OHIC will review all pricing assumptions, administrative charges, and other information to assess the reasonability of the premium requests by each insurer. The Commissioner may approve as filed, modify, or reject an insurer’s rate filing in accordance with powers vested in the Office by the Rhode Island General Laws. Additionally, the Rhode Island Attorney General’s Office is conducting an independent review of the rate filings and will offer recommendations to OHIC prior to the final decision on the rate filings."
According to OHIC, "The proposed rates do not apply to self-funded employer groups that account for approximately 65% of Rhode Islanders with employer-sponsored coverage. Self-funded employers pay the health care expenses of their employees and dependents directly, commonly relying on health insurance companies for administrative services, such as member enrollment, provider contracting, and claims processing."
OHIC will accept public comment on the proposed rates through July 19, 2024. Comments may be submitted in writing via email to [email protected]