Judge backs Hittner on Blue Cross rate hike

PROVIDENCE – A Superior Court judge last week ruled in favor of Health Insurance Commissioner Dr. Kathleen C. Hittner and her decision to approve an insurance rate hike for Blue Cross & Blue Shield of Rhode Island that had been challenged by Attorney General Peter F. Kilmartin.

Hittner in August approved a 10.4 percent increase proposed by Blue Cross for its direct-pay plans, which includes plans for those who pay without the help of employers. Kilmartin on Aug. 27 appealed that decision to the Superior Court.

Courts spokesman Craig N. Berke said Superior Court Associate Justice Michael A. Silverstein ruled in favor of Hittner.

Kilmartin declined to comment on last week’s decision and whether he would appeal.

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Hittner has defended her decision to approve the rate hike, citing the phase out of the temporary federal reinsurance program, previously funded through the Affordable Care Act. The increased rate would allow Blue Cross to apply $4.7 million in unanticipated 2014 reinsurance payments and $577,730 in federal subsidies to shore up its reserves, according to her office.

The increased rate is slated to go into effect on Jan. 1. •

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