HSRI rejects two low-cost plans from Neighborhood for 2017

TWO LOW-COST PLANS FROM NEIGHBORHOOD HEALTH PLAN of Rhode Island were rejected by HealthSource RI and will not be offered on the exchange next year.
TWO LOW-COST PLANS FROM NEIGHBORHOOD HEALTH PLAN of Rhode Island were rejected by HealthSource RI and will not be offered on the exchange next year.

PROVIDENCE – HealthSource RI rejected two low-cost plans from Neighborhood Health Plan of Rhode Island for 2017 to protect the affordability of health plans on the exchange, HSRI Director Zachary Sherman said recently.
The plans, if offered, would have raised the amount that subsidized customers pay after tax credits for premiums to approximately $152 a month, compared with $107, an average cost of $45 more per member, according to HSRI spokeswoman Kyrie Perry.
She said nearly 90 percent of HSRI enrollees are eligible for tax credits, and if the plans had been accepted, nearly $17 million in tax credits would be lost next year. The plans, if approved, would have lowered the amount of tax credits provided by the federal government to subsidize them.
Sherman said the decision to not offer the plans by Neighborhood was not made lightly, as the exchange values “the partnership of our carriers.”
“Protecting and ensuring the affordability of plans sold through HSRI is central to our mission of near-universal coverage, as well as our role as an active purchaser of plans that are in the best interest of our customers,” Sherman wrote in an email.
As of Nov. 1, a total of 33,291 individuals were enrolled in coverage for 2016. In addition to Neighborhood Health, Blue Cross & Blue Shield of Rhode Island offers plans on the exchange. UnitedHealth Group Inc. announced earlier this year it would not offer plans on Rhode Island’s exchange next year.
In 2017, Neighborhood is offering 11 insurance plans on the exchange – six for individuals and families, and five for small businesses. The two that were not offered were on the family and individual side, according to Patrick Tigue, director of commercial products at Neighborhood.
However, Tigue said Neighborhood still has the lowest-cost plans across all different metal tiers – gold, silver and bronze.
According to HSRI, gold plans require the highest monthly premium, but allow users to spend less on co-payments, co-insurance, and deductibles. Silver plans have lower monthly premiums than gold plans, but require users to spend more money on doctor visits than a gold plan. Bronze plans offer the least expensive monthly premium, but require more money to be spent on health care services before insurance starts paying the bill.
Tigue said Neighborhood was disappointed with HSRI’s decision not to offer the two plans.
The plans, called “preferred” and “quality,” both silver plans, would have cost $222 and $227 a month, respectively, for a 40-year-old, less expensive than two other Neighborhood silver plans offered on the exchange, “community” and “value,” which have average monthly premiums of $243 and $261, respectively. The bronze “innovation” plan is the lowest-priced offering from Neighborhood, with a monthly premium cost of $198 for a 40-year-old.
Tigue said the rejected plans represented two new affordable options.
“It’s HealthSource’s view that those plans would have a negative impact,” Tigue said, adding that Neighborhood felt strongly that having those plans in the market would give consumers more options.
Neighborhood’s overall rate will decrease 5.9 percent next year, while BCBSRI’s will rise by the same amount.

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