PROVIDENCE — Attorney General Peter F. Neronha announced Tuesday that he has formally challenged several rate increases requested by state health insurance companies.
Neronha has filed a complaint with the state health insurance secretary’s office against the health insurance company’s proposed rate increase. Requested earlier this summer from multiple insurance companies Trying to raise prices. These companies include Rhode Island’s Blue Cross Blue Shield, United Healthcare, Aetna, Cigna, and large-market Harvard Pilgrim.
The Attorney General also opposed price increases by Blue Cross Blue Shield, Neighborhood Health, Harvard Pilgrim and United Health in the small group market. On the personal market, Neighborhood Health and Blue Cross Blue Shield.
These rate increases will affect more than 166,000 Rhode Islanders with individual, large and small employer group insurance plans.
“Again, the Firm believes it is unjustified given the current economic climate and the relative financial strength of health care insurers, and therefore will impact more than 166,000 Rhode Islanders. We oppose the proposed increase in health insurance premiums given,” Neronha said in a statement on Tuesday. .
Neronha said the rate hikes come at a time of economic instability for many Rhode Islanders, the recent rise in inflation levels impacting the cost of basic necessities, and the “historic high housing costs” facing the state. The price has been proposed at the time of ‘.
“Rhode Islanders shouldn’t be the sole burden of rising health care costs,” Neronha said. “This should be a shared responsibility for all stakeholders, including health insurers.”
Requested mean increases ranged from 4.4 percent to 9.3 percent in individual groups. In the small group, insurers requested increases ranging from 5.8 per cent to 16.1 per cent on average.
The large group market demanded increases ranging from 5.9% to 12.4% on average, according to the Health Insurance Director’s Office.
Many of these companies have made huge profits in recent years. For example, Cigna called for a 5.9% increase in the large group market after reporting adjusted total revenue of over $180 billion in 2022. The company also forecast adjusted revenue of $187 billion this year.
Aetna, which is owned by Woonsocket-based CVS Health, called for a 6.6% rate hike in the large group market after recording $91.4 billion in revenue in 2022. In a statement on Tuesday, Neronha said the increase in insurer funding “is aimed at benefiting consumers by making insurance more affordable.
“Of all the players, they are generally the strongest financially,” said Neronha. “By preventing healthcare insurers from passing on increased costs to consumers, it creates incentives for stakeholders to work together to improve and strengthen the healthcare system.”
The state’s health insurance commissioner, Corey King, will review the coverage of health insurance companies and their contracts with consumers. The Secretariat’s final decision to approve, change or reject the proposed interest rate is expected to be announced in mid- to late-August.
Each year, Mr. Neronha’s office hires an independent actuary to evaluate proposed increases by health insurance companies. This isn’t the first time Neronha has refused to raise prices from insurers. Neronha has rejected several rate hikes from state health insurers in 2022. 2021,and 2020.
You can contact Alexa Gagosz at [email protected] her @alexagagosz and on instagram @AlexaGagosz.
