September 29th, 2010 
admin By Felice Freyer
Health Insurance Commissioner Christopher F. Koller has allowed Rhode Island’s two largest health insurers to increase their rates slightly to cover the costs of new benefits mandated by the federal health-care overhaul.
The increases range, on average, from 0.6 percent to 2.25 percent. The new rates for Blue Cross & Blue Shield of Rhode Island and United Healthcare will go into effect for plans renewed after Friday.
The increases will pay for the coverage of dependents through age 26 and preventive services that now must be provided without any cost to the consumer.
The federal law also prohibits lifetime limits on benefits and sets a minimum for annual limits. But neither insurer requested increases to pay for those changes.
Koller said in a statement Wednesday that he allowed the increases based on evidence that the insurers submitted and information on filings in other states. “The expansion of required benefits under federal health reform are real and come with small costs that can be estimated and compared,” Koller said.
Blue Cross had started to add 2 to 3 percent surcharges to its prices for plans renewing in October and November before seeking approval. The insurer said that it did not believe approval was needed to cover benefit expansions. Koller disagreed and now is requiring Blue Cross to reprice its plans and provide rebates to any companies charged unapproved rates.
United had filed for the increase before quoting any new prices. Tufts Health Plan did not file for increases.
Blue Cross asked Koller for an increase of 1 percent for preventive services and 2 percent for coverage of dependents up to age 26. He allowed the 1 percent for preventive services, but only 1.25 percent for coverage of young adults.
United requested 0.6 percent to 1.1 percent, depending on the plan, to pay for preventive services with no cost-sharing, and Koller allowed the requested increase. United did not seek any increases to pay for young adults.
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