30% Increase Health Insurance Costs For Kids And Others

Blue Cross: Some will get big rate hikes

30% increase coming for kids, men and older members. Rising costs, new health plan cited.

By Alan M. Wolf
alan.wolf@newsobserver.com

Posted: Friday, Aug. 20, 2010

More Information

Effects on groups vary

Blue Cross has proposed raising rates for individual members an average of 6.97 percent. But the actual change will vary depending on factors such as age, gender and location.
Examples of groups that will see the biggest increases as they enter a new age bracket:

+50 percent: members turning 66 (who may be eligible to switch to Medicare)
+30-39 percent: men turning 50 or 60
+20-29 percent: women turning 26, men turning 45
And examples of reductions:
-30 percent: dependent women 21-25
-22 percent: newborns turning 1, dependent women 17-20

The state's largest health insurer plans to hit some members with sharp rate increases again next year, blaming changes from the health overhaul and rising medical costs.
BlueCross BlueShield of North Carolina asked state regulators Thursday for permission to increase rates an average of 6.97 percent for its 300,000 individual members in the state. That's the lowest proposed annual increase since 2007, and about 28,000 people will see rate decreases, including women in their early 20s.

But rates for some children, men and older members will increase as much as 30 percent or more.

Assuming the new premiums are approved by the N.C. Department of Insurance this fall, Blue Cross officials plan to reach out to members facing the biggest increases to discuss options such as cheaper plans with higher deductibles. Insurers set rates by using a variety of factors, including age, medical history and where you live.

The latest rate hikes are significant because Blue Cross controls most of the state's market for individual health coverage. It's also the dominant provider of employer-based coverage, and has 3.7 million members statewide.

"If you have health care, you're going to pay more," said John McDonnell, a principal with Progressive Benefit Solutions in Raleigh, which helps employers buy insurance.
Some of his clients are facing rate increases of more than 20 percent. And not just from Blue Cross, but from other big providers, including Cigna, Aetna and United Healthcare.

It's partly because of increasing medical costs and more people using expensive services, but also because the new federal health law is forcing changes such as eliminating annual or lifetime limits on coverage, expanding dependent care for children until age 26 and more, McDonnell said.

As more provisions of the health overhaul law take affect in 2014, Blue Cross officials said they expect rates to rise further. "We do expect significant premium volatility in 2014 as the industry moves to an entirely new rating structure," said Patrick Getzen, Blue Cross' chief actuary.

The rising rates will probably force more people in North Carolina to cut back on coverage or go without, said Adam Linker, a policy analyst with the N.C. Justice Center's Health Access Coalition. And some of the additional "safety net" measures of the federal law won't start until 2014, he added.

"I'd like to see insurers take a small hit now, and then figure out what adjustments they need to make in 2014" when federal subsidies will help the uninsured afford coverage, Linker said. N.C. Department of Insurance actuaries soon will begin reviewing Blue Cross' rate request, but the agency is limited in its ability to reject rate hikes. Officials will examine data from Blue Cross to make sure that the average rates are reasonable but can't do much for specific members seeing sharp increases because of age or medical history.

"We always scrutinize the requests and make sure the rates are appropriate," said agency spokeswoman Kristin Milam.

As part of the reform act, the DOI received a $1 million federal grant this month to analyze and improve its rate-review process. That will include hiring a consulting firm to review its current system. DOI officials also plan to seek more authority to control rates when the General Assembly returns in January, Milam said.

There are bright spots for some Blue Cross members. About 28,000 individual customers will see lower rates next year. Rates for women 21-25 will drop 30 percent.
About 60 percent of individuals will have rate hikes of less than 10 percent.

The average individual member pays about $250 a month, according to Blue Cross. That will go to $266.75 with a 6.97 percent boost.

This is no bull just wait! Thanks liberals. When I give up because there's no reason to work, contibute and excell I'll join the grotesque line that is forming around this country. Then we can all starve.