Rhode Island AG objects to rate hike proposals from largest payers

Rhode Island Attorney General Peter Neronha filed objections with the state's health insurance commissioner over the rate hike proposals from six payers. 

Mr. Neronha objected to the proposals UnitedHealthcare, Cigna, Aetna, Blue Cross Blue Shield of Rhode Island, Harvard Pilgrim and Neighborhood Health, according to an Aug. 8 news release from his office. He is recommending that the health insurance commissioner "reject any and all rate increases for the six carriers given the increasingly difficult financial situation for Rhode Islanders." 

He said the rate increase requests are being made during a period of economic struggles for many in the state, following increased levels of inflation affecting critical goods and housing prices reaching historically high levels.

Mr. Neronha also said many of the insurers have seen significant profits in recent years, in some cases in the billions, according to the release. Cigna, for example, requested a 5.9 percent increase in the large group market. The company, meanwhile, reported total adjusted revenue of $180.5 billion in 2022 and is projecting a total adjusted revenue of $187 billion in 2023. 

His office also examined the actuarial basis for the payers' increase requests. The office worked with independent actuaries and found the rate requests to be inflated. 

He said if the health insurance commissioner does find that increases are warranted, they should be "limited to much lower rates, and no more than what is adequate for insurers to provide services but still affordable for residents," the release said.




Copyright © 2024 Becker's Healthcare. All Rights Reserved. Privacy Policy. Cookie Policy. Linking and Reprinting Policy.

 

Top 40 articles from the past 6 months