Wed May 11, 2011
Blue Cross request 10.5% rate increase
By MEGAN HALL
Providence, RI – By MEGAN HALL
Rhode Island employers with Blue Cross Blue Shield would see a double digit rate increase under a new request by the health insurance company.
Blue Cross is asking the state's Health Insurance Commissioner for an average rate increase of 10.5 percent for both small and large employers in Rhode Island.
The company says that might sound like a lot- but it's two percentage points less than what it needs to charge to cover its costs. The health insurance company says its new rates reflect the cost of for medical and dental services, administrative services, state taxes, and contributions to its reserves.
Health Insurance Commissioner Chris Koller will approve, reject, or alter Blue Cross's request by June 24th . Last year, Koller approved a nearly 10 percent increase for the company. Tufts and United are also due to request rate increases this week.
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