CRANSTON – Medicare subscribers who buy supplemental coverage through the state’s two largest insurers will see their rates increase next year, though by less than the companies had asked, under the 2009 rates just approved by the R.I. Office of the Health Insurance Commissioner (OHIC).

The cost of Medicare Supplemental Insurance plans sold in Rhode Island will rise an average of 7.4 percent at Blue Cross & Blue Shield of Rhode Island (BCBSRI), the office said in a statement yesterday afternoon. The company initially had sought a 9.4-percent hike, the OHIC said, adding that “Blue Cross’ average 2-percentage-point reduction reflected a projected surplus margin reduced to 1.33-percent, and medical-cost reductions, as well.”

For the AARP / UnitedHealthcare plans, the increase will average 2.1 percent or 3.4 percent, depending on the group of plans. In each case, the hike will be 0.8 percentage points less than requested, reflecting “a revised projected profit / surplus margin of 1 percent,” the OHIC said.

In August, both carriers filed their initial rate proposals for policies to be sold in 2009. Revised requests were later submitted by both insurers, based on public comments solicited last month by the OHIC and various community organizations, as well as the OHIC’s analysis of their initial filings.

“The approved rate increases are lower than the commercial market is seeing, and reflect a balance between the reality of rising medical care costs across the country and the need for health plans to share in efforts to keep health insurance affordable,” Christopher F. Koller, the state health insurance commissioner, said in a statement.

“In all our rate reviews this year, we have consistently analyzed medical cost drivers and reduced allowable profits for the plans,” Koller added. “We anticipate increased efforts and scrutiny in the coming year.”

Medicare-supplement, or “Medigap,” policies provide subscribers with coverage beyond that of the basic Medicare plan. Federal regulations require that Medicare-supplement plans sold since 1992 must comprise standard benefit packages defined by Medicare, the OHIC noted, although members who were enrolled in such plans before 1992 may continue to purchase that non-standard coverage.

BCBSRI is the state’s largest Medigap vendor, with 19,000 subscribers across Rhode Island. The AARP/UnitedHealth plans are next, with 5,500 subscribers.

“Medicare subscribers seeking additional coverage have a variety of insurance options available to them,” Koller said. “They should explore those options carefully before making a decision, using resources available to them from the carriers themselves, community agencies and the R.I. Department of Elderly Affairs.”

Blue Cross & Blue Shield of Rhode Island, based in Providence, covers more than 670,000 members. BCBSRI is an independent licensee of the Blue Cross and Blue Shield Association. Additional information is available at www.bcbsri.com.

News and information from the R.I. Office of the Health Insurance Commissioner are available at www.ohic.ri.gov.