Ore. regulator approves Regence 14.3% rate hike on individuals. Affects 69,305

DCBS:

DCBS approved a 14.3 percent average annual increase for the individual health benefit plans instead of the 22.7 percent annual increase requested. The approved increase is intended to cover the projected rise in health care claims costs and the estimated cost of implementing benefit changes due to federal healthcare reform. The original request was based on a planned effective date of October 1, 2010; however, the final approved effective date is February 1, 2011. This delayed effective date contributes to the lower rate approved because Regence was unable to implement the usual quarterly rate change for October.

From February 2009 through January 2010, medical and prescription claims costs for the individual health plans offered by Regence increased 12.6 percent.

The overall projected average impact of changes made due to federal health care reform that was included in this rate request is 3.5 percent.

o 2005: 9.0% Increase o 2006: 16.0% Decrease o 2007: 17.6% Increase o 2008: 24.1% Increase o 2009: 17.1% Increase

The five-year history lists the annual rate increase from December to December. Rates have increased, on average, by 9.4% over the five year period.

Read the full article here. Discuss below.

Posted on Feb. 01, 2011
 comments

  • 11:05 a.m.
    Feb 1, '11
    (Show?)

    Dear DCBS,

    Thanks for nothing.

    Sincerely,

    Oregon consumers

  •
    12:06 a.m.
    Feb 2, '11
    (Show?)

    Sal, you can see what DCBS saw in the online rate filings. Some quotes from the decision:

    "With a 14.3 percent rate filing increase, Regence projects it will not earn a profit on this business, but instead will experience a 10.0 percent loss over the next year."

    "While the department is concerned about the impact of this rate increase on consumers, it is also concerned about potential future rate increases if rates are kept artificially low (italics mine). Regence had three years of losses on individual policies before the significant loss this past year."

    Look at the decision to see the context for the last comment. DCBS is hosing Regence, not consumers.

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