Blue Cross Blue Shield of Vermont proposes rate increase

Berlin, VT – Some Vermonters could see the cost of their insurance rise next year after Blue Cross Blue Shield of Vermont announced a proposed rate increase Monday.

The insurance provider covers roughly 30 percent of Vermonters, and plans to increase individual rates by 21 percent. Small group plans for businesses with up to 100 employees could see a 24 percent increase.

Blue Cross Blue Shield filed a request with the Green Mountain Care Board to make the changes. The Green Mountain Care Board held a public forum Thursday to discuss the proposed increase and allow members to share their concerns.

Some private healthcare providers who attended the meeting said they may need to reevaluate which insurance providers they accept if prices go up. They said Blue Cross Blue Shield’s reimbursement rates do not cover the cost of providing their services.

“Therapists in private practice in the state of Vermont don’t make a lot of money,” said Sarah, a therapist who works in private practice. “I’m actually considering going off insurance panels for the next five years so that I can actually afford to be in business and pay for my needs, and I don’t think I’m the only one.”

Blue Cross Blue Shield cited the increasing cost of medical care, hospital visits and drugs, and a recent increase in claims as reasons for the hike.

“While we realize this is extremely difficult for our members, it is a necessary financial step,” Blue Cross Blue Shield of Vermont President and CEO Don George wrote to members Monday. “Since May, health care claims have increased dramatically, and our member reserve levels have declined precipitously.”

Blue Cross Blue Shield initially proposed rate increases in May at four percent below the current proposal. In his letter George noted that these increases were the highest proposed since Vermont Health Connect was founded in 2010.

The Green Mountain Care Board still needs to approve the proposed rate increases before they go into effect.

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