OHIC approves 2017 commercial health insurance rates

HEALTH INSURANCE COMMISSIONER Dr. Kathleen C. Hittner said commercial health insurance rates have been approved for 2017. / COURTESY R.I. OFFICE OF THE HEALTH INSURANCE COMMISSIONER
HEALTH INSURANCE COMMISSIONER Dr. Kathleen C. Hittner said commercial health insurance rates have been approved for 2017. / COURTESY R.I. OFFICE OF THE HEALTH INSURANCE COMMISSIONER

CRANSTON – Commercial health insurance rates have been approved for 2017, the state Office of the Health Insurance Commissioner said Thursday.

According to a press statement, Dr. Kathleen C. Hittner, the state’s health insurance commissioner, approved lower rates than those that were requested by most health insurance companies, which will result in approximately $18 million in savings for individuals and employees.

“Throughout the rate review process, my staff and I must continuously balance affordability to the consumer with a legal obligation to guard the solvency of insurers, Hittner said in a statement. “We were encouraged to see several requests filed this year that sought more modest increases than in previous years, or even sought rate decreases. However, too many hardworking Rhode Islanders and business owners still struggle with the increasing cost of health insurance for their families and employers. There continues to be room to improve affordability as we transform the health care system.”

OHIC reviewed the requested changes to premium rates for plans sold to individuals, small employers and large employers who purchase their coverage through Blue Cross & Blue Shield of Rhode Island, Neighborhood Health Plan of Rhode Island, Tufts Health Plan or UnitedHealthcare.

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Reviews were conducted under OHIC’s annual rate review process except for BCBSRI’s individual health plans, which were subject to a separate review required by Rhode Island law.

The weighted overall rate change includes adjustments to the plans offered to reflect the benefits selected, including modifications to prior year benefits and pricing, the release stated.

It is the average premium increase that consumers will see, before reflecting changes for a consumer’s age and benefits selected.

In the individual market, the 2017 approved weighted average overall rate change from 2016 is a 5.9 percent increase for BCBSRI and a 5.9 decrease for NHPRI. Respective base rates of $381.56 and $281.49 were approved for BCBSRI and NHPRI.

For the small employer market, the 2017 approved weighted overall rate change from 2016 is a 3.6 percent increase for BCBSRI ($375.86 base rate), a 3.1 percent decrease for NHPRI ($310.17 rate), an 0.8 percent increase for Tufts HMO ($402.52), a 1 percent increase for Tufts PPO ($403.11), a 0.4 percent increase for United HMO ($399.19) and a 0.1 percent increase for United PPO ($403.62).

The expected premium increases are averages for the large employer market, as the demographic changes in an employer’s workforce and its rates of medical care utilization may lead to higher or lower premium rates. In that market, the 2017 approved weighted overall rate change from 2016 is a 7 percent increase for BCBSRI, a 4.8 percent increase for Tufts HMO, a 4.3 percent increase for Tufts PPO and a 3.6 percent increase for United.

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